Correlation Between Healthcare and Hainan Haiqi
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By analyzing existing cross correlation between Healthcare Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Healthcare and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Hainan Haiqi.
Diversification Opportunities for Healthcare and Hainan Haiqi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Healthcare and Hainan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Healthcare i.e., Healthcare and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Healthcare and Hainan Haiqi
Assuming the 90 days trading horizon Healthcare Co is expected to generate 0.78 times more return on investment than Hainan Haiqi. However, Healthcare Co is 1.28 times less risky than Hainan Haiqi. It trades about -0.04 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.06 per unit of risk. If you would invest 700.00 in Healthcare Co on October 29, 2024 and sell it today you would lose (15.00) from holding Healthcare Co or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Healthcare Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Healthcare |
| Hainan Haiqi Transpo |
Healthcare and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Hainan Haiqi
The main advantage of trading using opposite Healthcare and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Healthcare vs. Shanghai Jinfeng Wine | Healthcare vs. Holitech Technology Co | Healthcare vs. iSoftStone Information Technology | Healthcare vs. Beijing Kaiwen Education |
| Hainan Haiqi vs. Zhuhai Comleader Information | Hainan Haiqi vs. Guangzhou Ruoyuchen Information | Hainan Haiqi vs. Sublime China Information | Hainan Haiqi vs. East Money Information |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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