Correlation Between Beijing Wantai and Heren Health
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By analyzing existing cross correlation between Beijing Wantai Biological and Heren Health Co, you can compare the effects of market volatilities on Beijing Wantai and Heren 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 Beijing Wantai with a short position of Heren Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Heren Health.
Diversification Opportunities for Beijing Wantai and Heren Health
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Heren is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Heren Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heren Health and Beijing Wantai 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 Beijing Wantai Biological are associated (or correlated) with Heren Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heren Health has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Heren Health go up and down completely randomly.
Pair Corralation between Beijing Wantai and Heren Health
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 7.35 times less return on investment than Heren Health. But when comparing it to its historical volatility, Beijing Wantai Biological is 1.86 times less risky than Heren Health. It trades about 0.04 of its potential returns per unit of risk. Heren Health Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Heren Health Co on September 3, 2024 and sell it today you would earn a total of 441.00 from holding Heren Health Co or generate 43.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Heren Health Co
Performance |
| Timeline |
| Beijing Wantai Biological |
| Heren Health |
Beijing Wantai and Heren Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Heren Health
The main advantage of trading using opposite Beijing Wantai and Heren Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Heren 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 Heren Health will offset losses from the drop in Heren Health's long position.| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
| Heren Health vs. Chengdu Kanghua Biological | Heren Health vs. Beijing Wantai Biological | Heren Health vs. Suzhou Novoprotein Scientific | Heren Health vs. Aluminum Corp of |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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