Correlation Between Zoy Home and Humanwell Healthcare
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By analyzing existing cross correlation between Zoy Home Furnishing and Humanwell Healthcare Group, you can compare the effects of market volatilities on Zoy Home and Humanwell Healthcare 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 Zoy Home with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Humanwell Healthcare.
Diversification Opportunities for Zoy Home and Humanwell Healthcare
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Humanwell is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and Zoy Home 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 Zoy Home Furnishing are associated (or correlated) with Humanwell Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humanwell Healthcare has no effect on the direction of Zoy Home i.e., Zoy Home and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between Zoy Home and Humanwell Healthcare
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.07 times more return on investment than Humanwell Healthcare. However, Zoy Home is 1.07 times more volatile than Humanwell Healthcare Group. It trades about 0.18 of its potential returns per unit of risk. Humanwell Healthcare Group is currently generating about 0.14 per unit of risk. If you would invest 912.00 in Zoy Home Furnishing on August 28, 2024 and sell it today you would earn a total of 191.00 from holding Zoy Home Furnishing or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Humanwell Healthcare Group
Performance |
| Timeline |
| Zoy Home Furnishing |
| Humanwell Healthcare |
Zoy Home and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Humanwell Healthcare
The main advantage of trading using opposite Zoy Home and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Humanwell Healthcare 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 Humanwell Healthcare will offset losses from the drop in Humanwell Healthcare's long position.| Zoy Home vs. China Petroleum Chemical | Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. China State Construction | Zoy Home vs. China Railway Group |
| Humanwell Healthcare vs. Qtone Education Group | Humanwell Healthcare vs. Beijing Kaiwen Education | Humanwell Healthcare vs. Xinhua Winshare Publishing | Humanwell Healthcare vs. China Publishing Media |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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