Correlation Between Shenyang Huitian and Dezhan HealthCare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Huitian Thermal and Dezhan HealthCare Co, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Dezhan HealthCare.
Diversification Opportunities for Shenyang Huitian and Dezhan HealthCare
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Dezhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Dezhan HealthCare
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.31 times more return on investment than Dezhan HealthCare. However, Shenyang Huitian is 1.31 times more volatile than Dezhan HealthCare Co. It trades about 0.08 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.05 per unit of risk. If you would invest 350.00 in Shenyang Huitian Thermal on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Shenyang Huitian Thermal or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Dezhan HealthCare |
Shenyang Huitian and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Dezhan HealthCare
The main advantage of trading using opposite Shenyang Huitian and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Wuhan Yangtze Communication | Shenyang Huitian vs. Henzhen Zhaowei Machinery | Shenyang Huitian vs. Sinomach General Machinery | Shenyang Huitian vs. Nanjing Putian Telecommunications |
| Dezhan HealthCare vs. Shaanxi Meineng Clean | Dezhan HealthCare vs. Gansu Jiu Steel | Dezhan HealthCare vs. Hang Xiao Steel | Dezhan HealthCare vs. Jiangxi JDL Environmental |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |