Correlation Between Humanwell Healthcare and CICT Mobile
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By analyzing existing cross correlation between Humanwell Healthcare Group and CICT Mobile Communication, you can compare the effects of market volatilities on Humanwell Healthcare and CICT Mobile and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Humanwell Healthcare with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanwell Healthcare and CICT Mobile.
Diversification Opportunities for Humanwell Healthcare and CICT Mobile
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Humanwell and CICT is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Humanwell Healthcare Group and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication and Humanwell Healthcare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Humanwell Healthcare Group are associated (or correlated) with CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of Humanwell Healthcare i.e., Humanwell Healthcare and CICT Mobile go up and down completely randomly.
Pair Corralation between Humanwell Healthcare and CICT Mobile
Assuming the 90 days trading horizon Humanwell Healthcare Group is expected to generate 0.77 times more return on investment than CICT Mobile. However, Humanwell Healthcare Group is 1.3 times less risky than CICT Mobile. It trades about 0.15 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about 0.07 per unit of risk. If you would invest 2,117 in Humanwell Healthcare Group on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Humanwell Healthcare Group or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humanwell Healthcare Group vs. CICT Mobile Communication
Performance |
| Timeline |
| Humanwell Healthcare |
| CICT Mobile Communication |
Humanwell Healthcare and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanwell Healthcare and CICT Mobile
The main advantage of trading using opposite Humanwell Healthcare and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanwell Healthcare position performs unexpectedly, CICT Mobile can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CICT Mobile will offset losses from the drop in CICT Mobile's long position.| Humanwell Healthcare vs. Industrial Bank Co | Humanwell Healthcare vs. Zijin Mining Group | Humanwell Healthcare vs. Jiangxi Naipu Mining | Humanwell Healthcare vs. Guocheng Mining Co |
| CICT Mobile vs. Humanwell Healthcare Group | CICT Mobile vs. China National Software | CICT Mobile vs. Hangzhou Coco Healthcare | CICT Mobile vs. Anhui Huaren Health |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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