Correlation Between Dezhan HealthCare and GreenTech Environmental
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By analyzing existing cross correlation between Dezhan HealthCare Co and GreenTech Environmental Co, you can compare the effects of market volatilities on Dezhan HealthCare and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and GreenTech Environmental.
Diversification Opportunities for Dezhan HealthCare and GreenTech Environmental
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dezhan and GreenTech is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and GreenTech Environmental
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the GreenTech Environmental. In addition to that, Dezhan HealthCare is 2.13 times more volatile than GreenTech Environmental Co. It trades about -0.36 of its total potential returns per unit of risk. GreenTech Environmental Co is currently generating about -0.43 per unit of volatility. If you would invest 1,566 in GreenTech Environmental Co on October 13, 2024 and sell it today you would lose (267.00) from holding GreenTech Environmental Co or give up 17.05% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Dezhan HealthCare |
| GreenTech Environmental |
Dezhan HealthCare and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and GreenTech Environmental
The main advantage of trading using opposite Dezhan HealthCare and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Dezhan HealthCare Co | GreenTech Environmental vs. Goodwill E Health | GreenTech Environmental vs. Shanghai Rongtai Health | GreenTech Environmental vs. China Sports Industry |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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