Correlation Between Dezhan HealthCare and Beijing Wantai
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By analyzing existing cross correlation between Dezhan HealthCare Co and Beijing Wantai Biological, you can compare the effects of market volatilities on Dezhan HealthCare and Beijing Wantai 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 Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Beijing Wantai.
Diversification Opportunities for Dezhan HealthCare and Beijing Wantai
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dezhan and Beijing is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Beijing Wantai go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Beijing Wantai
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the Beijing Wantai. In addition to that, Dezhan HealthCare is 1.58 times more volatile than Beijing Wantai Biological. It trades about -0.63 of its total potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.22 per unit of volatility. If you would invest 7,480 in Beijing Wantai Biological on October 15, 2024 and sell it today you would lose (692.00) from holding Beijing Wantai Biological or give up 9.25% 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. Beijing Wantai Biological
Performance |
| Timeline |
| Dezhan HealthCare |
| Beijing Wantai Biological |
Dezhan HealthCare and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Beijing Wantai
The main advantage of trading using opposite Dezhan HealthCare and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Beijing Wantai 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 Wantai will offset losses from the drop in Beijing Wantai's long position.| Dezhan HealthCare vs. Humanwell Healthcare Group | Dezhan HealthCare vs. Jiangnan Mould Plastic | Dezhan HealthCare vs. Advanced Technology Materials | Dezhan HealthCare vs. Konfoong Materials International |
| Beijing Wantai vs. Luyin Investment Group | Beijing Wantai vs. Harbin Hatou Investment | Beijing Wantai vs. China Asset Management | Beijing Wantai vs. Dezhan HealthCare 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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