Correlation Between Dezhan HealthCare and Peoples Insurance
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By analyzing existing cross correlation between Dezhan HealthCare Co and Peoples Insurance of, you can compare the effects of market volatilities on Dezhan HealthCare and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Peoples Insurance.
Diversification Opportunities for Dezhan HealthCare and Peoples Insurance
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dezhan and Peoples is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Peoples Insurance go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Peoples Insurance
Assuming the 90 days trading horizon Dezhan HealthCare is expected to generate 17.14 times less return on investment than Peoples Insurance. In addition to that, Dezhan HealthCare is 1.62 times more volatile than Peoples Insurance of. It trades about 0.0 of its total potential returns per unit of risk. Peoples Insurance of is currently generating about 0.05 per unit of volatility. If you would invest 515.00 in Peoples Insurance of on September 2, 2024 and sell it today you would earn a total of 209.00 from holding Peoples Insurance of or generate 40.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Peoples Insurance of
Performance |
| Timeline |
| Dezhan HealthCare |
| Peoples Insurance |
Dezhan HealthCare and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Peoples Insurance
The main advantage of trading using opposite Dezhan HealthCare and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Dezhan HealthCare vs. Harbin Air Conditioning | Dezhan HealthCare vs. Air China Ltd | Dezhan HealthCare vs. Longmaster Information Tech | Dezhan HealthCare vs. Hangzhou Gisway Information |
| Peoples Insurance vs. Shandong Mining Machinery | Peoples Insurance vs. Shenzhen Shenbao Industrial | Peoples Insurance vs. Lonkey Industrial Co | Peoples Insurance vs. Dhc Software 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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