Correlation Between Dezhan HealthCare and Shandong Polymer
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By analyzing existing cross correlation between Dezhan HealthCare Co and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Dezhan HealthCare and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Shandong Polymer.
Diversification Opportunities for Dezhan HealthCare and Shandong Polymer
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dezhan and Shandong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Shandong Polymer go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Shandong Polymer
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the Shandong Polymer. In addition to that, Dezhan HealthCare is 1.17 times more volatile than Shandong Polymer Biochemicals. It trades about -0.1 of its total potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.11 per unit of volatility. If you would invest 418.00 in Shandong Polymer Biochemicals on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Shandong Polymer Biochemicals or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Dezhan HealthCare |
| Shandong Polymer Bio |
Dezhan HealthCare and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Shandong Polymer
The main advantage of trading using opposite Dezhan HealthCare and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| Dezhan HealthCare vs. Ye Chiu Metal | Dezhan HealthCare vs. Innovative Medical Management | Dezhan HealthCare vs. Huaxia Fund Management | Dezhan HealthCare vs. JCHX Mining Management |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Shandong Gold Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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