Correlation Between Dezhan HealthCare and Beijing Jiaman
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By analyzing existing cross correlation between Dezhan HealthCare Co and Beijing Jiaman Dress, you can compare the effects of market volatilities on Dezhan HealthCare and Beijing Jiaman 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 Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Beijing Jiaman.
Diversification Opportunities for Dezhan HealthCare and Beijing Jiaman
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dezhan and Beijing is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Beijing Jiaman
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 1.22 times more return on investment than Beijing Jiaman. However, Dezhan HealthCare is 1.22 times more volatile than Beijing Jiaman Dress. It trades about 0.05 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.01 per unit of risk. If you would invest 334.00 in Dezhan HealthCare Co on September 12, 2024 and sell it today you would earn a total of 88.00 from holding Dezhan HealthCare Co or generate 26.35% 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. Beijing Jiaman Dress
Performance |
| Timeline |
| Dezhan HealthCare |
| Beijing Jiaman Dress |
Dezhan HealthCare and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Beijing Jiaman
The main advantage of trading using opposite Dezhan HealthCare and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman'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 |
| Beijing Jiaman vs. Lutian Machinery Co | Beijing Jiaman vs. PetroChina Co Ltd | Beijing Jiaman vs. Bank of China | Beijing Jiaman vs. Gansu Jiu Steel |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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