Correlation Between Healthcare and Ciwen Media
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By analyzing existing cross correlation between Healthcare Co and Ciwen Media Co, you can compare the effects of market volatilities on Healthcare and Ciwen Media 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 Healthcare with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Ciwen Media.
Diversification Opportunities for Healthcare and Ciwen Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Healthcare and Ciwen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Healthcare 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 Healthcare Co are associated (or correlated) with Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Healthcare i.e., Healthcare and Ciwen Media go up and down completely randomly.
Pair Corralation between Healthcare and Ciwen Media
Assuming the 90 days trading horizon Healthcare is expected to generate 1.61 times less return on investment than Ciwen Media. But when comparing it to its historical volatility, Healthcare Co is 1.19 times less risky than Ciwen Media. It trades about 0.16 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Ciwen Media Co on September 9, 2024 and sell it today you would earn a total of 282.00 from holding Ciwen Media Co or generate 55.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Healthcare Co vs. Ciwen Media Co
Performance |
Timeline |
Healthcare |
Ciwen Media |
Healthcare and Ciwen Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Healthcare and Ciwen Media
The main advantage of trading using opposite Healthcare and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.Healthcare vs. Railway Signal Communication | Healthcare vs. Zhongtong Guomai Communication | Healthcare vs. Bright Oceans Inter | Healthcare vs. Shandong Homey Aquatic |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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