Correlation Between China Construction and Humanwell Healthcare
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By analyzing existing cross correlation between China Construction Bank and Humanwell Healthcare Group, you can compare the effects of market volatilities on China Construction 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 Construction with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Humanwell Healthcare.
Diversification Opportunities for China Construction and Humanwell Healthcare
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Humanwell is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank 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 Construction 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 Construction Bank 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 Construction i.e., China Construction and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between China Construction and Humanwell Healthcare
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.6 times more return on investment than Humanwell Healthcare. However, China Construction Bank is 1.65 times less risky than Humanwell Healthcare. It trades about 0.04 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about -0.04 per unit of risk. If you would invest 847.00 in China Construction Bank on November 4, 2024 and sell it today you would earn a total of 7.00 from holding China Construction Bank or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Humanwell Healthcare Group
Performance |
| Timeline |
| China Construction Bank |
| Humanwell Healthcare |
China Construction and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Humanwell Healthcare
The main advantage of trading using opposite China Construction and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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 Construction vs. Zhejiang Zhengguang Industrial | China Construction vs. JCHX Mining Management | China Construction vs. GRINM Semiconductor Materials | China Construction vs. Hainan Mining Co |
| Humanwell Healthcare vs. Hainan Mining Co | Humanwell Healthcare vs. GigaDevice SemiconductorBeiji | Humanwell Healthcare vs. Zhengzhou Coal Mining | Humanwell Healthcare vs. Shenzhen Shenbao Industrial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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