Correlation Between Guotai Epoint and Heren Health
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By analyzing existing cross correlation between Guotai Epoint Software and Heren Health Co, you can compare the effects of market volatilities on Guotai Epoint 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 Guotai Epoint with a short position of Heren Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Heren Health.
Diversification Opportunities for Guotai Epoint and Heren Health
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guotai and Heren is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Heren Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heren Health and Guotai Epoint 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 Guotai Epoint Software 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 Guotai Epoint i.e., Guotai Epoint and Heren Health go up and down completely randomly.
Pair Corralation between Guotai Epoint and Heren Health
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the Heren Health. But the stock apears to be less risky and, when comparing its historical volatility, Guotai Epoint Software is 1.08 times less risky than Heren Health. The stock trades about -0.02 of its potential returns per unit of risk. The Heren Health Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,409 in Heren Health Co on November 5, 2024 and sell it today you would lose (1.00) from holding Heren Health Co or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Heren Health Co
Performance |
| Timeline |
| Guotai Epoint Software |
| Heren Health |
Guotai Epoint and Heren Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Heren Health
The main advantage of trading using opposite Guotai Epoint and Heren Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint 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.| Guotai Epoint vs. Time Publishing and | Guotai Epoint vs. Shandong Hongchuang Aluminum | Guotai Epoint vs. Ye Chiu Metal | Guotai Epoint vs. Western Metal Materials |
| Heren Health vs. Grandblue Environment Co | Heren Health vs. Fujian Nanwang Environment | Heren Health vs. Sinosteel Engineering and | Heren Health vs. Tongxing Environmental Protection |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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