Correlation Between Dezhan HealthCare and Agricultural Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dezhan HealthCare Co and Agricultural Bank of, you can compare the effects of market volatilities on Dezhan HealthCare and Agricultural 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Agricultural Bank.
Diversification Opportunities for Dezhan HealthCare and Agricultural Bank
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dezhan and Agricultural is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Agricultural Bank go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Agricultural Bank
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 5.86 times more return on investment than Agricultural Bank. However, Dezhan HealthCare is 5.86 times more volatile than Agricultural Bank of. It trades about 0.08 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.4 per unit of risk. If you would invest 317.00 in Dezhan HealthCare Co on September 24, 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dezhan HealthCare Co vs. Agricultural Bank of
Performance |
Timeline |
Dezhan HealthCare |
Agricultural Bank |
Dezhan HealthCare and Agricultural Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dezhan HealthCare and Agricultural Bank
The main advantage of trading using opposite Dezhan HealthCare and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Agricultural 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 Agricultural Bank will offset losses from the drop in Agricultural 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 |
Agricultural Bank vs. Guocheng Mining Co | Agricultural Bank vs. Sino Platinum Metals Co | Agricultural Bank vs. Guangdong Jinma Entertainment | Agricultural Bank vs. Shenyang Huitian Thermal |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |