Correlation Between Bank of Communications and Healthcare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of Communications and Healthcare Co, you can compare the effects of market volatilities on Bank of Communications and 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 Bank of Communications with a short position of Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Healthcare.
Diversification Opportunities for Bank of Communications and Healthcare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Healthcare is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare and Bank of Communications 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 Bank of Communications are associated (or correlated) with Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Bank of Communications i.e., Bank of Communications and Healthcare go up and down completely randomly.
Pair Corralation between Bank of Communications and Healthcare
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 1.5 times less risky than Healthcare. The stock trades about -0.24 of its potential returns per unit of risk. The Healthcare Co is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Healthcare Co on October 30, 2024 and sell it today you would lose (34.00) from holding Healthcare Co or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Healthcare Co
Performance |
| Timeline |
| Bank of Communications |
| Healthcare |
Bank of Communications and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Healthcare
The main advantage of trading using opposite Bank of Communications and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, 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 Healthcare will offset losses from the drop in Healthcare's long position.The idea behind Bank of Communications and Healthcare Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Healthcare vs. Cloud Live Technology | Healthcare vs. Nanjing Putian Telecommunications | Healthcare vs. Shenzhen Coship Electronics | Healthcare vs. Shenzhen Hifuture Electric |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |