Correlation Between Maoming Petro and Dezhan HealthCare
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Dezhan HealthCare Co, you can compare the effects of market volatilities on Maoming Petro 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 Maoming Petro with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Dezhan HealthCare.
Diversification Opportunities for Maoming Petro and Dezhan HealthCare
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maoming and Dezhan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Maoming Petro 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 Maoming Petro Chemical Shihua 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 Maoming Petro i.e., Maoming Petro and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Maoming Petro and Dezhan HealthCare
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Maoming Petro Chemical Shihua is 1.24 times less risky than Dezhan HealthCare. The stock trades about -0.02 of its potential returns per unit of risk. The Dezhan HealthCare Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 359.00 in Dezhan HealthCare Co on October 27, 2024 and sell it today you would lose (58.00) from holding Dezhan HealthCare Co or give up 16.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Maoming Petro Chemical |
| Dezhan HealthCare |
Maoming Petro and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Dezhan HealthCare
The main advantage of trading using opposite Maoming Petro and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro 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.| Maoming Petro vs. Fiberhome Telecommunication Technologies | Maoming Petro vs. Jinhui Liquor Co | Maoming Petro vs. Jiangsu Financial Leasing | Maoming Petro vs. Caihong Display Devices |
| Dezhan HealthCare vs. Ming Yang Smart | Dezhan HealthCare vs. 159681 | Dezhan HealthCare vs. 159005 | Dezhan HealthCare vs. Loctek Ergonomic Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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