Correlation Between Dezhan HealthCare and Citic Offshore
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By analyzing existing cross correlation between Dezhan HealthCare Co and Citic Offshore Helicopter, you can compare the effects of market volatilities on Dezhan HealthCare and Citic Offshore 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 Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Citic Offshore.
Diversification Opportunities for Dezhan HealthCare and Citic Offshore
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dezhan and Citic is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter 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 Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Citic Offshore go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Citic Offshore
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the Citic Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Dezhan HealthCare Co is 1.06 times less risky than Citic Offshore. The stock trades about -0.64 of its potential returns per unit of risk. The Citic Offshore Helicopter is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 2,661 in Citic Offshore Helicopter on October 16, 2024 and sell it today you would lose (417.00) from holding Citic Offshore Helicopter or give up 15.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Dezhan HealthCare |
| Citic Offshore Helicopter |
Dezhan HealthCare and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Citic Offshore
The main advantage of trading using opposite Dezhan HealthCare and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.| Dezhan HealthCare vs. Humanwell Healthcare Group | Dezhan HealthCare vs. Jiangnan Mould Plastic | Dezhan HealthCare vs. Advanced Technology Materials | Dezhan HealthCare vs. Konfoong Materials International |
| Citic Offshore vs. Anhui Huaren Health | Citic Offshore vs. Dezhan HealthCare Co | Citic Offshore vs. Goodwill E Health | Citic Offshore vs. Youngy Health 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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