Correlation Between Dezhan HealthCare and Huafa Industrial
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By analyzing existing cross correlation between Dezhan HealthCare Co and Huafa Industrial Co, you can compare the effects of market volatilities on Dezhan HealthCare and Huafa Industrial 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 Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Huafa Industrial.
Diversification Opportunities for Dezhan HealthCare and Huafa Industrial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dezhan and Huafa is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial 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 Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Huafa Industrial go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Huafa Industrial
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 3.29 times more return on investment than Huafa Industrial. However, Dezhan HealthCare is 3.29 times more volatile than Huafa Industrial Co. It trades about -0.01 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.38 per unit of risk. If you would invest 319.00 in Dezhan HealthCare Co on October 30, 2024 and sell it today you would lose (19.00) from holding Dezhan HealthCare Co or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Huafa Industrial Co
Performance |
| Timeline |
| Dezhan HealthCare |
| Huafa Industrial |
Dezhan HealthCare and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Huafa Industrial
The main advantage of trading using opposite Dezhan HealthCare and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Dezhan HealthCare vs. Kontour Medical Technology | Dezhan HealthCare vs. Road Environment Technology | Dezhan HealthCare vs. Hengkang Medical Group | Dezhan HealthCare vs. Silkroad Visual Technology |
| Huafa Industrial vs. Will Semiconductor Co | Huafa Industrial vs. Giantec Semiconductor Corp | Huafa Industrial vs. Baoshan Iron Steel | Huafa Industrial vs. GreenTech Environmental 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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