Correlation Between China Eastern and Humanwell Healthcare
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By analyzing existing cross correlation between China Eastern Airlines and Humanwell Healthcare Group, you can compare the effects of market volatilities on China Eastern and Humanwell Healthcare 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 China Eastern with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Humanwell Healthcare.
Diversification Opportunities for China Eastern and Humanwell Healthcare
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Humanwell is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and China Eastern 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 China Eastern Airlines are associated (or correlated) with Humanwell Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humanwell Healthcare has no effect on the direction of China Eastern i.e., China Eastern and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between China Eastern and Humanwell Healthcare
Assuming the 90 days trading horizon China Eastern Airlines is expected to generate 0.87 times more return on investment than Humanwell Healthcare. However, China Eastern Airlines is 1.15 times less risky than Humanwell Healthcare. It trades about -0.07 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about -0.13 per unit of risk. If you would invest 401.00 in China Eastern Airlines on October 26, 2024 and sell it today you would lose (16.00) from holding China Eastern Airlines or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Eastern Airlines vs. Humanwell Healthcare Group
Performance |
| Timeline |
| China Eastern Airlines |
| Humanwell Healthcare |
China Eastern and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Eastern and Humanwell Healthcare
The main advantage of trading using opposite China Eastern and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern position performs unexpectedly, Humanwell Healthcare 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 Humanwell Healthcare will offset losses from the drop in Humanwell Healthcare's long position.| China Eastern vs. Humanwell Healthcare Group | China Eastern vs. Digiwin Software Co | China Eastern vs. Andon Health Co | China Eastern vs. Maxvision Technology Corp |
| Humanwell Healthcare vs. Ming Yang Smart | Humanwell Healthcare vs. 159681 | Humanwell Healthcare vs. 159005 | Humanwell Healthcare vs. Loctek Ergonomic Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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