Correlation Between Healthcare and Lushang Property
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By analyzing existing cross correlation between Healthcare Co and Lushang Property Co, you can compare the effects of market volatilities on Healthcare and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Lushang Property.
Diversification Opportunities for Healthcare and Lushang Property
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Healthcare and Lushang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Healthcare i.e., Healthcare and Lushang Property go up and down completely randomly.
Pair Corralation between Healthcare and Lushang Property
Assuming the 90 days trading horizon Healthcare Co is expected to generate 1.42 times more return on investment than Lushang Property. However, Healthcare is 1.42 times more volatile than Lushang Property Co. It trades about 0.14 of its potential returns per unit of risk. Lushang Property Co is currently generating about 0.04 per unit of risk. If you would invest 734.00 in Healthcare Co on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Healthcare Co or generate 7.08% 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. Lushang Property Co
Performance |
| Timeline |
| Healthcare |
| Lushang Property |
Healthcare and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Lushang Property
The main advantage of trading using opposite Healthcare and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Healthcare vs. Lutian Machinery Co | Healthcare vs. PetroChina Co Ltd | Healthcare vs. Bank of China | Healthcare vs. Gansu Jiu Steel |
| Lushang Property vs. Zhongtong Guomai Communication | Lushang Property vs. CSSC Offshore Marine | Lushang Property vs. Hangzhou Gaoxin Rubber | Lushang Property vs. Sichuan Jinshi Technology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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