Correlation Between Healthcare and Anhui Deli
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By analyzing existing cross correlation between Healthcare Co and Anhui Deli Household, you can compare the effects of market volatilities on Healthcare and Anhui Deli 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 Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Anhui Deli.
Diversification Opportunities for Healthcare and Anhui Deli
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthcare and Anhui is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household 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 Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Healthcare i.e., Healthcare and Anhui Deli go up and down completely randomly.
Pair Corralation between Healthcare and Anhui Deli
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Co is 1.37 times less risky than Anhui Deli. The stock trades about -0.04 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 674.00 in Anhui Deli Household on October 13, 2024 and sell it today you would lose (144.00) from holding Anhui Deli Household or give up 21.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Anhui Deli Household
Performance |
| Timeline |
| Healthcare |
| Anhui Deli Household |
Healthcare and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Anhui Deli
The main advantage of trading using opposite Healthcare and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.| Healthcare vs. Sanbo Hospital Management | Healthcare vs. Innovative Medical Management | Healthcare vs. Heren Health Co | Healthcare vs. Everjoy Health Group |
| Anhui Deli vs. Citic Offshore Helicopter | Anhui Deli vs. Zhongyin Babi Food | Anhui Deli vs. Suzhou Weizhixiang Food | Anhui Deli vs. Yankershop Food Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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