Correlation Between Industrial Bank and Humanwell Healthcare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Humanwell Healthcare Group, you can compare the effects of market volatilities on Industrial Bank 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 Industrial Bank with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Humanwell Healthcare.
Diversification Opportunities for Industrial Bank and Humanwell Healthcare
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Humanwell is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Industrial Bank 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 Industrial Bank Co 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 Industrial Bank i.e., Industrial Bank and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Industrial Bank and Humanwell Healthcare
Assuming the 90 days trading horizon Industrial Bank is expected to generate 6.03 times less return on investment than Humanwell Healthcare. But when comparing it to its historical volatility, Industrial Bank Co is 2.2 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 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,185 in Humanwell Healthcare Group on September 12, 2024 and sell it today you would earn a total of 227.00 from holding Humanwell Healthcare Group or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Industrial Bank |
| Humanwell Healthcare |
Industrial Bank and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Humanwell Healthcare
The main advantage of trading using opposite Industrial Bank and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank 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.| Industrial Bank vs. China Petroleum Chemical | Industrial Bank vs. PetroChina Co Ltd | Industrial Bank vs. China Mobile Limited | Industrial Bank vs. Industrial and Commercial |
| Humanwell Healthcare vs. Cultural Investment Holdings | Humanwell Healthcare vs. Gome Telecom Equipment | Humanwell Healthcare vs. Holitech Technology Co | Humanwell Healthcare vs. Zotye Automobile Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |