Correlation Between China State and Heren Health
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By analyzing existing cross correlation between China State Construction and Heren Health Co, you can compare the effects of market volatilities on China State and Heren Health 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 State with a short position of Heren Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Heren Health.
Diversification Opportunities for China State and Heren Health
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Heren is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Heren Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heren Health and China State 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 State Construction are associated (or correlated) with Heren Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heren Health has no effect on the direction of China State i.e., China State and Heren Health go up and down completely randomly.
Pair Corralation between China State and Heren Health
Assuming the 90 days trading horizon China State Construction is expected to generate 0.43 times more return on investment than Heren Health. However, China State Construction is 2.34 times less risky than Heren Health. It trades about 0.01 of its potential returns per unit of risk. Heren Health Co is currently generating about -0.15 per unit of risk. If you would invest 613.00 in China State Construction on September 14, 2024 and sell it today you would earn a total of 1.00 from holding China State Construction or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Heren Health Co
Performance |
| Timeline |
| China State Construction |
| Heren Health |
China State and Heren Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Heren Health
The main advantage of trading using opposite China State and Heren Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Heren Health 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 Heren Health will offset losses from the drop in Heren Health's long position.| China State vs. Ming Yang Smart | China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology |
| Heren Health vs. China Mobile Limited | Heren Health vs. Agricultural Bank of | Heren Health vs. Industrial and Commercial | Heren Health vs. China State Construction |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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