Correlation Between Dezhan HealthCare and Industrial Bank
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By analyzing existing cross correlation between Dezhan HealthCare Co and Industrial Bank Co, you can compare the effects of market volatilities on Dezhan HealthCare and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Industrial Bank.
Diversification Opportunities for Dezhan HealthCare and Industrial Bank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dezhan and Industrial is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Industrial Bank go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Industrial Bank
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 4.05 times more return on investment than Industrial Bank. However, Dezhan HealthCare is 4.05 times more volatile than Industrial Bank Co. It trades about 0.08 of its potential returns per unit of risk. Industrial Bank Co is currently generating about -0.03 per unit of risk. If you would invest 303.00 in Dezhan HealthCare Co on September 25, 2024 and sell it today you would earn a total of 39.00 from holding Dezhan HealthCare Co or generate 12.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dezhan HealthCare Co vs. Industrial Bank Co
Performance |
Timeline |
Dezhan HealthCare |
Industrial Bank |
Dezhan HealthCare and Industrial Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dezhan HealthCare and Industrial Bank
The main advantage of trading using opposite Dezhan HealthCare and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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