Correlation Between Dezhan HealthCare and Industrial
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By analyzing existing cross correlation between Dezhan HealthCare Co and Industrial and Commercial, you can compare the effects of market volatilities on Dezhan HealthCare and Industrial 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Industrial.
Diversification Opportunities for Dezhan HealthCare and Industrial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dezhan and Industrial is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Industrial go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Industrial
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 2.06 times more return on investment than Industrial. However, Dezhan HealthCare is 2.06 times more volatile than Industrial and Commercial. It trades about 0.15 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.13 per unit of risk. If you would invest 247.00 in Dezhan HealthCare Co on September 6, 2024 and sell it today you would earn a total of 68.00 from holding Dezhan HealthCare Co or generate 27.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dezhan HealthCare Co vs. Industrial and Commercial
Performance |
Timeline |
Dezhan HealthCare |
Industrial and Commercial |
Dezhan HealthCare and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dezhan HealthCare and Industrial
The main advantage of trading using opposite Dezhan HealthCare and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Industrial 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 will offset losses from the drop in Industrial's long position.Dezhan HealthCare vs. Industrial and Commercial | Dezhan HealthCare vs. Kweichow Moutai Co | Dezhan HealthCare vs. Agricultural Bank of | Dezhan HealthCare vs. China Mobile Limited |
Industrial vs. Guosheng Financial Holding | Industrial vs. Xiandai Investment Co | Industrial vs. Qilu Bank Co | Industrial vs. Xiamen Bank Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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