Correlation Between CICT Mobile and Humanwell Healthcare
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By analyzing existing cross correlation between CICT Mobile Communication and Humanwell Healthcare Group, you can compare the effects of market volatilities on CICT Mobile 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 CICT Mobile with a short position of Humanwell Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Humanwell Healthcare.
Diversification Opportunities for CICT Mobile and Humanwell Healthcare
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Humanwell is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Humanwell Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humanwell Healthcare and CICT Mobile 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 CICT Mobile Communication 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 CICT Mobile i.e., CICT Mobile and Humanwell Healthcare go up and down completely randomly.
Pair Corralation between CICT Mobile and Humanwell Healthcare
Assuming the 90 days trading horizon CICT Mobile is expected to generate 1.68 times less return on investment than Humanwell Healthcare. In addition to that, CICT Mobile is 1.3 times more volatile than Humanwell Healthcare Group. It trades about 0.07 of its total potential returns per unit of risk. Humanwell Healthcare Group is currently generating about 0.15 per unit of volatility. If you would invest 2,117 in Humanwell Healthcare Group on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Humanwell Healthcare Group or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. Humanwell Healthcare Group
Performance |
| Timeline |
| CICT Mobile Communication |
| Humanwell Healthcare |
CICT Mobile and Humanwell Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Humanwell Healthcare
The main advantage of trading using opposite CICT Mobile and Humanwell Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile 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.| CICT Mobile vs. Humanwell Healthcare Group | CICT Mobile vs. China National Software | CICT Mobile vs. Hangzhou Coco Healthcare | CICT Mobile vs. Anhui Huaren Health |
| Humanwell Healthcare vs. Industrial Bank Co | Humanwell Healthcare vs. Zijin Mining Group | Humanwell Healthcare vs. Jiangxi Naipu Mining | Humanwell Healthcare vs. Guocheng Mining Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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