Correlation Between Healthcare and Andon Health
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By analyzing existing cross correlation between Healthcare Co and Andon Health Co, you can compare the effects of market volatilities on Healthcare and Andon 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 Healthcare with a short position of Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Andon Health.
Diversification Opportunities for Healthcare and Andon Health
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthcare and Andon is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health 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 Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Healthcare i.e., Healthcare and Andon Health go up and down completely randomly.
Pair Corralation between Healthcare and Andon Health
Assuming the 90 days trading horizon Healthcare Co is expected to generate 1.14 times more return on investment than Andon Health. However, Healthcare is 1.14 times more volatile than Andon Health Co. It trades about 0.02 of its potential returns per unit of risk. Andon Health Co is currently generating about -0.07 per unit of risk. If you would invest 734.00 in Healthcare Co on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Healthcare Co or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Andon Health Co
Performance |
| Timeline |
| Healthcare |
| Andon Health |
Healthcare and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Andon Health
The main advantage of trading using opposite Healthcare and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Andon 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 Andon Health will offset losses from the drop in Andon Health's long position.| Healthcare vs. PetroChina Co Ltd | Healthcare vs. China Mobile Limited | Healthcare vs. Industrial and Commercial | Healthcare vs. China Life Insurance |
| Andon Health vs. Chengdu Kanghua Biological | Andon Health vs. Beijing Wantai Biological | Andon Health vs. Suzhou Novoprotein Scientific | Andon Health vs. Aluminum Corp of |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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