Correlation Between Dezhan HealthCare and Shenyang Huitian
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By analyzing existing cross correlation between Dezhan HealthCare Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Dezhan HealthCare and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Shenyang Huitian.
Diversification Opportunities for Dezhan HealthCare and Shenyang Huitian
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dezhan and Shenyang is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Shenyang Huitian
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the Shenyang Huitian. In addition to that, Dezhan HealthCare is 1.22 times more volatile than Shenyang Huitian Thermal. It trades about -0.24 of its total potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.14 per unit of volatility. If you would invest 356.00 in Shenyang Huitian Thermal on October 28, 2024 and sell it today you would lose (22.00) from holding Shenyang Huitian Thermal or give up 6.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Dezhan HealthCare |
| Shenyang Huitian Thermal |
Dezhan HealthCare and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Shenyang Huitian
The main advantage of trading using opposite Dezhan HealthCare and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Dezhan HealthCare vs. Mango Excellent Media | Dezhan HealthCare vs. Guangzhou Jinyi Media | Dezhan HealthCare vs. China Publishing Media | Dezhan HealthCare vs. Everjoy Health Group |
| Shenyang Huitian vs. Gansu Huangtai Wine marketing | Shenyang Huitian vs. Xinjiang Communications Construction | Shenyang Huitian vs. Orinko Advanced Plastics | Shenyang Huitian vs. Jiangnan Mould Plastic |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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