Correlation Between Dezhan HealthCare and Hefei Metalforming
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By analyzing existing cross correlation between Dezhan HealthCare Co and Hefei Metalforming Mach, you can compare the effects of market volatilities on Dezhan HealthCare and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Hefei Metalforming.
Diversification Opportunities for Dezhan HealthCare and Hefei Metalforming
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dezhan and Hefei is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Hefei Metalforming
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to generate 0.91 times more return on investment than Hefei Metalforming. However, Dezhan HealthCare Co is 1.09 times less risky than Hefei Metalforming. It trades about 0.0 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.0 per unit of risk. If you would invest 364.00 in Dezhan HealthCare Co on October 13, 2024 and sell it today you would lose (67.00) from holding Dezhan HealthCare Co or give up 18.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Dezhan HealthCare |
| Hefei Metalforming Mach |
Dezhan HealthCare and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Hefei Metalforming
The main advantage of trading using opposite Dezhan HealthCare and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Dezhan HealthCare vs. Qtone Education Group | Dezhan HealthCare vs. Offcn Education Technology | Dezhan HealthCare vs. Northern United Publishing | Dezhan HealthCare vs. Shandong Publishing Media |
| Hefei Metalforming vs. Dezhan HealthCare Co | Hefei Metalforming vs. Shandong Sinoglory Health | Hefei Metalforming vs. Eastroc Beverage Group | Hefei Metalforming vs. Shanghai Rongtai Health |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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