Correlation Between Healthcare and Shenzhen Aisidi
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By analyzing existing cross correlation between Healthcare Co and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Healthcare and Shenzhen Aisidi 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 Healthcare with a short position of Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Shenzhen Aisidi.
Diversification Opportunities for Healthcare and Shenzhen Aisidi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Healthcare and Shenzhen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi and Healthcare 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 Healthcare Co are associated (or correlated) with Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Healthcare i.e., Healthcare and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Healthcare and Shenzhen Aisidi
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Shenzhen Aisidi. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Co is 2.03 times less risky than Shenzhen Aisidi. The stock trades about -0.15 of its potential returns per unit of risk. The Shenzhen Aisidi Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,410 in Shenzhen Aisidi Co on October 25, 2024 and sell it today you would lose (130.00) from holding Shenzhen Aisidi Co or give up 9.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Healthcare Co vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Healthcare |
| Shenzhen Aisidi |
Healthcare and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Shenzhen Aisidi
The main advantage of trading using opposite Healthcare and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Healthcare vs. PetroChina Co Ltd | Healthcare vs. Gansu Jiu Steel | Healthcare vs. Ming Yang Smart | Healthcare vs. Aba Chemicals Corp |
| Shenzhen Aisidi vs. Shenwu Energy Saving | Shenzhen Aisidi vs. Shanghai Phichem Material | Shenzhen Aisidi vs. HeNan Splendor Science | Shenzhen Aisidi vs. Swancor Advanced Materials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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