Correlation Between Healthcare and By Health
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By analyzing existing cross correlation between Healthcare Co and By health, you can compare the effects of market volatilities on Healthcare and By 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and By Health.
Diversification Opportunities for Healthcare and By Health
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Healthcare and 300146 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Healthcare i.e., Healthcare and By Health go up and down completely randomly.
Pair Corralation between Healthcare and By Health
Assuming the 90 days trading horizon Healthcare Co is expected to generate 1.01 times more return on investment than By Health. However, Healthcare is 1.01 times more volatile than By health. It trades about 0.04 of its potential returns per unit of risk. By health is currently generating about -0.13 per unit of risk. If you would invest 708.00 in Healthcare Co on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Healthcare Co or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. By health
Performance |
| Timeline |
| Healthcare |
| By health |
Healthcare and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and By Health
The main advantage of trading using opposite Healthcare and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, By 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 By Health will offset losses from the drop in By Health's long position.| Healthcare vs. Jiujiang Shanshui Technology | Healthcare vs. Elite Color Environmental | Healthcare vs. Olympic Circuit Technology | Healthcare vs. Bengang Steel Plates |
| By Health vs. Nanjing Putian Telecommunications | By Health vs. Shenzhen Hifuture Electric | By Health vs. Tianjin Realty Development | By Health vs. Shenyang Huitian Thermal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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