Correlation Between Dezhan HealthCare and Guangzhou Dongfang
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By analyzing existing cross correlation between Dezhan HealthCare Co and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Dezhan HealthCare and Guangzhou Dongfang 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 Dezhan HealthCare with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Guangzhou Dongfang.
Diversification Opportunities for Dezhan HealthCare and Guangzhou Dongfang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dezhan and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Dezhan 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 Dezhan HealthCare Co are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Guangzhou Dongfang
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 2.29 times more return on investment than Guangzhou Dongfang. However, Dezhan HealthCare is 2.29 times more volatile than Guangzhou Dongfang Hotel. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about 0.06 per unit of risk. If you would invest 317.00 in Dezhan HealthCare Co on September 25, 2024 and sell it today you would earn a total of 25.00 from holding Dezhan HealthCare Co or generate 7.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dezhan HealthCare Co vs. Guangzhou Dongfang Hotel
Performance |
Timeline |
Dezhan HealthCare |
Guangzhou Dongfang Hotel |
Dezhan HealthCare and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dezhan HealthCare and Guangzhou Dongfang
The main advantage of trading using opposite Dezhan HealthCare and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.Dezhan HealthCare vs. Agricultural Bank of | Dezhan HealthCare vs. Industrial and Commercial | Dezhan HealthCare vs. Bank of China | Dezhan HealthCare vs. China Construction Bank |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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