Correlation Between Dezhan HealthCare and Beijing Originwater
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By analyzing existing cross correlation between Dezhan HealthCare Co and Beijing Originwater Technology, you can compare the effects of market volatilities on Dezhan HealthCare and Beijing Originwater 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 Beijing Originwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Beijing Originwater.
Diversification Opportunities for Dezhan HealthCare and Beijing Originwater
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dezhan and Beijing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Beijing Originwater Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Originwater 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 Beijing Originwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Originwater has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Beijing Originwater go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Beijing Originwater
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 1.96 times more return on investment than Beijing Originwater. However, Dezhan HealthCare is 1.96 times more volatile than Beijing Originwater Technology. It trades about 0.31 of its potential returns per unit of risk. Beijing Originwater Technology is currently generating about -0.13 per unit of risk. If you would invest 315.00 in Dezhan HealthCare Co on September 12, 2024 and sell it today you would earn a total of 107.00 from holding Dezhan HealthCare Co or generate 33.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Beijing Originwater Technology
Performance |
| Timeline |
| Dezhan HealthCare |
| Beijing Originwater |
Dezhan HealthCare and Beijing Originwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Beijing Originwater
The main advantage of trading using opposite Dezhan HealthCare and Beijing Originwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Beijing Originwater 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 Beijing Originwater will offset losses from the drop in Beijing Originwater's long position.| Dezhan HealthCare vs. Cultural Investment Holdings | Dezhan HealthCare vs. Gome Telecom Equipment | Dezhan HealthCare vs. Holitech Technology Co | Dezhan HealthCare vs. Zotye Automobile Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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