Correlation Between Agricultural Bank and Dezhan HealthCare
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By analyzing existing cross correlation between Agricultural Bank of and Dezhan HealthCare Co, you can compare the effects of market volatilities on Agricultural Bank and Dezhan HealthCare 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 Agricultural Bank with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Dezhan HealthCare.
Diversification Opportunities for Agricultural Bank and Dezhan HealthCare
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Dezhan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Agricultural Bank 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 Agricultural Bank of are associated (or correlated) with Dezhan HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dezhan HealthCare has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Agricultural Bank and Dezhan HealthCare
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 4.62 times less return on investment than Dezhan HealthCare. But when comparing it to its historical volatility, Agricultural Bank of is 2.6 times less risky than Dezhan HealthCare. It trades about 0.15 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 246.00 in Dezhan HealthCare Co on September 12, 2024 and sell it today you would earn a total of 176.00 from holding Dezhan HealthCare Co or generate 71.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Agricultural Bank of vs. Dezhan HealthCare Co
Performance |
Timeline |
Agricultural Bank |
Dezhan HealthCare |
Agricultural Bank and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Dezhan HealthCare
The main advantage of trading using opposite Agricultural Bank and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Dezhan HealthCare 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 Dezhan HealthCare will offset losses from the drop in Dezhan HealthCare's long position.Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
Dezhan HealthCare vs. Cultural Investment Holdings | Dezhan HealthCare vs. Gome Telecom Equipment | Dezhan HealthCare vs. Holitech Technology Co | Dezhan HealthCare vs. Zotye Automobile 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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