Correlation Between Dezhan HealthCare and Kweichow Moutai
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By analyzing existing cross correlation between Dezhan HealthCare Co and Kweichow Moutai Co, you can compare the effects of market volatilities on Dezhan HealthCare and Kweichow Moutai 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 Kweichow Moutai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Kweichow Moutai.
Diversification Opportunities for Dezhan HealthCare and Kweichow Moutai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dezhan and Kweichow is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Kweichow Moutai Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kweichow Moutai 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 Kweichow Moutai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kweichow Moutai has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Kweichow Moutai go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Kweichow Moutai
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 2.19 times more return on investment than Kweichow Moutai. However, Dezhan HealthCare is 2.19 times more volatile than Kweichow Moutai Co. It trades about 0.1 of its potential returns per unit of risk. Kweichow Moutai Co is currently generating about -0.02 per unit of risk. If you would invest 299.00 in Dezhan HealthCare Co on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Dezhan HealthCare Co or generate 6.69% 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. Kweichow Moutai Co
Performance |
| Timeline |
| Dezhan HealthCare |
| Kweichow Moutai |
Dezhan HealthCare and Kweichow Moutai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Kweichow Moutai
The main advantage of trading using opposite Dezhan HealthCare and Kweichow Moutai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Kweichow Moutai 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 Kweichow Moutai will offset losses from the drop in Kweichow Moutai's long position.| Dezhan HealthCare vs. Agricultural Bank of | Dezhan HealthCare vs. Industrial and Commercial | Dezhan HealthCare vs. Bank of China | Dezhan HealthCare vs. PetroChina Co Ltd |
| Kweichow Moutai vs. Nanjing Medlander Medical | Kweichow Moutai vs. Changjiang Jinggong Steel | Kweichow Moutai vs. City Development Environment | Kweichow Moutai vs. Double Medical Technology |
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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