Correlation Between Dezhan HealthCare and De Rucci

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dezhan HealthCare and De Rucci at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dezhan HealthCare and De Rucci into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dezhan HealthCare Co and De Rucci Healthy, you can compare the effects of market volatilities on Dezhan HealthCare and De Rucci 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 De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and De Rucci.

Diversification Opportunities for Dezhan HealthCare and De Rucci

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Dezhan and 001323 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy 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 De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and De Rucci go up and down completely randomly.

Pair Corralation between Dezhan HealthCare and De Rucci

Assuming the 90 days trading horizon Dezhan HealthCare is expected to generate 1.11 times less return on investment than De Rucci. In addition to that, Dezhan HealthCare is 1.37 times more volatile than De Rucci Healthy. It trades about 0.1 of its total potential returns per unit of risk. De Rucci Healthy is currently generating about 0.15 per unit of volatility. If you would invest  3,729  in De Rucci Healthy on September 1, 2024 and sell it today you would earn a total of  273.00  from holding De Rucci Healthy or generate 7.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Dezhan HealthCare Co  vs.  De Rucci Healthy

 Performance 
       Timeline  
Dezhan HealthCare 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Dezhan HealthCare Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dezhan HealthCare sustained solid returns over the last few months and may actually be approaching a breakup point.
De Rucci Healthy 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in De Rucci Healthy are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, De Rucci sustained solid returns over the last few months and may actually be approaching a breakup point.

Dezhan HealthCare and De Rucci Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dezhan HealthCare and De Rucci

The main advantage of trading using opposite Dezhan HealthCare and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci's long position.
Dezhan HealthCare vs. China Petroleum Chemical
Dezhan HealthCare vs. PetroChina Co Ltd
Dezhan HealthCare vs. China State Construction
Dezhan HealthCare vs. China Railway Group
The idea behind Dezhan HealthCare Co and De Rucci Healthy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
De Rucci vs. Kweichow Moutai Co
De Rucci vs. NAURA Technology Group
De Rucci vs. Zhejiang Orient Gene
De Rucci vs. APT Medical
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Money Managers
Screen money managers from public funds and ETFs managed around the world


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY