Correlation Between Guangzhou Baiyunshan and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Guangzhou Baiyunshan and EPSILON HEALTHCARE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Guangzhou Baiyunshan and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guangzhou Baiyunshan Pharmaceutical and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Guangzhou Baiyunshan and EPSILON 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 Guangzhou Baiyunshan with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Baiyunshan and EPSILON HEALTHCARE.
Diversification Opportunities for Guangzhou Baiyunshan and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangzhou and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Baiyunshan Pharmaceu and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD and Guangzhou Baiyunshan 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 Guangzhou Baiyunshan Pharmaceutical are associated (or correlated) with EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of Guangzhou Baiyunshan i.e., Guangzhou Baiyunshan and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Guangzhou Baiyunshan and EPSILON HEALTHCARE
If you would invest 210.00 in Guangzhou Baiyunshan Pharmaceutical on September 24, 2024 and sell it today you would earn a total of 4.00 from holding Guangzhou Baiyunshan Pharmaceutical or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangzhou Baiyunshan Pharmaceu vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Guangzhou Baiyunshan |
| EPSILON HEALTHCARE LTD |
Guangzhou Baiyunshan and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Baiyunshan and EPSILON HEALTHCARE
The main advantage of trading using opposite Guangzhou Baiyunshan and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Baiyunshan position performs unexpectedly, EPSILON 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE's long position.| Guangzhou Baiyunshan vs. Merck Company | Guangzhou Baiyunshan vs. Takeda Pharmaceutical | Guangzhou Baiyunshan vs. HANSOH PHARMAC HD 00001 | Guangzhou Baiyunshan vs. Elanco Animal Health |
| EPSILON HEALTHCARE vs. Merck Company | EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. HANSOH PHARMAC HD 00001 | EPSILON HEALTHCARE vs. Guangzhou Baiyunshan Pharmaceutical |
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 Directory module to find actively traded commodities issued by global exchanges.
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