Correlation Between Dezhan HealthCare and Shaanxi Meineng
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By analyzing existing cross correlation between Dezhan HealthCare Co and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Dezhan HealthCare and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Shaanxi Meineng.
Diversification Opportunities for Dezhan HealthCare and Shaanxi Meineng
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dezhan and Shaanxi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Shaanxi Meineng
Assuming the 90 days trading horizon Dezhan HealthCare is expected to generate 1.75 times less return on investment than Shaanxi Meineng. In addition to that, Dezhan HealthCare is 1.4 times more volatile than Shaanxi Meineng Clean. It trades about 0.05 of its total potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.13 per unit of volatility. If you would invest 1,319 in Shaanxi Meineng Clean on August 28, 2024 and sell it today you would earn a total of 79.00 from holding Shaanxi Meineng Clean or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Dezhan HealthCare |
| Shaanxi Meineng Clean |
Dezhan HealthCare and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Shaanxi Meineng
The main advantage of trading using opposite Dezhan HealthCare and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Dezhan HealthCare vs. Shaanxi Meineng Clean | Dezhan HealthCare vs. Gansu Jiu Steel | Dezhan HealthCare vs. Hang Xiao Steel | Dezhan HealthCare vs. Jiangxi JDL Environmental |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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