Correlation Between Home Plate and China Health
Can any of the company-specific risk be diversified away by investing in both Home Plate and China Health 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 Home Plate and China Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Plate Acquisition and China Health Management, you can compare the effects of market volatilities on Home Plate and China 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 Home Plate with a short position of China Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Plate and China Health.
Diversification Opportunities for Home Plate and China Health
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Home and China is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Home Plate Acquisition and China Health Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Health Management and Home Plate 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 Home Plate Acquisition are associated (or correlated) with China Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Health Management has no effect on the direction of Home Plate i.e., Home Plate and China Health go up and down completely randomly.
Pair Corralation between Home Plate and China Health
If you would invest 0.50 in China Health Management on August 26, 2024 and sell it today you would earn a total of 0.11 from holding China Health Management or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Home Plate Acquisition vs. China Health Management
Performance |
| Timeline |
| Home Plate Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Health Management |
Home Plate and China Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Plate and China Health
The main advantage of trading using opposite Home Plate and China Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Plate position performs unexpectedly, China 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 China Health will offset losses from the drop in China Health's long position.| Home Plate vs. Embrace Change Acquisition | Home Plate vs. Bannix Acquisition Corp | Home Plate vs. Global Blockchain Acquisition | Home Plate vs. Bannix Acquisition Corp |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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