Correlation Between Healthcare and Shenzhen Changfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Healthcare Co and Shenzhen Changfang Light, you can compare the effects of market volatilities on Healthcare and Shenzhen Changfang 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 Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Shenzhen Changfang.
Diversification Opportunities for Healthcare and Shenzhen Changfang
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthcare and Shenzhen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Healthcare i.e., Healthcare and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Healthcare and Shenzhen Changfang
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Shenzhen Changfang. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Co is 1.43 times less risky than Shenzhen Changfang. The stock trades about -0.4 of its potential returns per unit of risk. The Shenzhen Changfang Light is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 190.00 in Shenzhen Changfang Light on October 14, 2024 and sell it today you would lose (10.00) from holding Shenzhen Changfang Light or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Healthcare |
| Shenzhen Changfang Light |
Healthcare and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Shenzhen Changfang
The main advantage of trading using opposite Healthcare and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Healthcare vs. Chongqing Brewery Co | Healthcare vs. Jinhui Liquor Co | Healthcare vs. Holitech Technology Co | Healthcare vs. Eyebright Medical Technology |
| Shenzhen Changfang vs. Offshore Oil Engineering | Shenzhen Changfang vs. Anji Foodstuff Co | Shenzhen Changfang vs. Postal Savings Bank | Shenzhen Changfang vs. GRG Banking Equipment |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |