Correlation Between Heren Health and Lushang Property
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By analyzing existing cross correlation between Heren Health Co and Lushang Property Co, you can compare the effects of market volatilities on Heren Health and Lushang Property 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 Heren Health with a short position of Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heren Health and Lushang Property.
Diversification Opportunities for Heren Health and Lushang Property
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heren and Lushang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Heren Health Co and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property and Heren Health 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 Heren Health Co are associated (or correlated) with Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Heren Health i.e., Heren Health and Lushang Property go up and down completely randomly.
Pair Corralation between Heren Health and Lushang Property
Assuming the 90 days trading horizon Heren Health Co is expected to generate 1.67 times more return on investment than Lushang Property. However, Heren Health is 1.67 times more volatile than Lushang Property Co. It trades about 0.15 of its potential returns per unit of risk. Lushang Property Co is currently generating about 0.11 per unit of risk. If you would invest 1,011 in Heren Health Co on September 6, 2024 and sell it today you would earn a total of 381.00 from holding Heren Health Co or generate 37.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.28% |
Values | Daily Returns |
Heren Health Co vs. Lushang Property Co
Performance |
Timeline |
Heren Health |
Lushang Property |
Heren Health and Lushang Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Heren Health and Lushang Property
The main advantage of trading using opposite Heren Health and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heren Health position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.Heren Health vs. Industrial and Commercial | Heren Health vs. Agricultural Bank of | Heren Health vs. China Construction Bank | Heren Health vs. Bank of China |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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