Correlation Between Dezhan HealthCare and Shenzhen Aisidi
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By analyzing existing cross correlation between Dezhan HealthCare Co and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Dezhan HealthCare and Shenzhen Aisidi 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 Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Shenzhen Aisidi.
Diversification Opportunities for Dezhan HealthCare and Shenzhen Aisidi
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dezhan and Shenzhen is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Shenzhen Aisidi
Assuming the 90 days trading horizon Dezhan HealthCare is expected to generate 5.66 times less return on investment than Shenzhen Aisidi. But when comparing it to its historical volatility, Dezhan HealthCare Co is 1.26 times less risky than Shenzhen Aisidi. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,066 in Shenzhen Aisidi Co on October 24, 2024 and sell it today you would earn a total of 264.00 from holding Shenzhen Aisidi Co or generate 24.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Dezhan HealthCare |
| Shenzhen Aisidi |
Dezhan HealthCare and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Shenzhen Aisidi
The main advantage of trading using opposite Dezhan HealthCare and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Dezhan HealthCare vs. Jiangsu Financial Leasing | Dezhan HealthCare vs. Qingdao Haier Biomedical | Dezhan HealthCare vs. North Copper Shanxi | Dezhan HealthCare vs. Uroica Mining Safety |
| Shenzhen Aisidi vs. Dymatic Chemicals | Shenzhen Aisidi vs. Bloomage Biotechnology Corp | Shenzhen Aisidi vs. China Publishing Media | Shenzhen Aisidi vs. Omnijoi Media Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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