Correlation Between Dezhan HealthCare and SUNSEA Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dezhan HealthCare Co and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on Dezhan HealthCare and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and SUNSEA Telecommunicatio.
Diversification Opportunities for Dezhan HealthCare and SUNSEA Telecommunicatio
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dezhan and SUNSEA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the SUNSEA Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Dezhan HealthCare Co is 2.28 times less risky than SUNSEA Telecommunicatio. The stock trades about -0.21 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 859.00 in SUNSEA Telecommunications Co on October 25, 2024 and sell it today you would earn a total of 99.00 from holding SUNSEA Telecommunications Co or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| Dezhan HealthCare |
| SUNSEA Telecommunicatio |
Dezhan HealthCare and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and SUNSEA Telecommunicatio
The main advantage of trading using opposite Dezhan HealthCare and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio's long position.| Dezhan HealthCare vs. Agricultural Bank of | Dezhan HealthCare vs. Industrial and Commercial | Dezhan HealthCare vs. Bank of China | Dezhan HealthCare vs. China Construction Bank |
| SUNSEA Telecommunicatio vs. Kweichow Moutai Co | SUNSEA Telecommunicatio vs. NAURA Technology Group | SUNSEA Telecommunicatio vs. APT Medical | SUNSEA Telecommunicatio vs. BYD Co Ltd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |