Correlation Between Dezhan HealthCare and Biwin Storage
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By analyzing existing cross correlation between Dezhan HealthCare Co and Biwin Storage Technology, you can compare the effects of market volatilities on Dezhan HealthCare and Biwin Storage 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 Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and Biwin Storage.
Diversification Opportunities for Dezhan HealthCare and Biwin Storage
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dezhan and Biwin is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage Technology 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 Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and Biwin Storage go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and Biwin Storage
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the Biwin Storage. In addition to that, Dezhan HealthCare is 1.52 times more volatile than Biwin Storage Technology. It trades about -0.01 of its total potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.01 per unit of volatility. If you would invest 5,977 in Biwin Storage Technology on October 30, 2024 and sell it today you would lose (27.00) from holding Biwin Storage Technology or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. Biwin Storage Technology
Performance |
| Timeline |
| Dezhan HealthCare |
| Biwin Storage Technology |
Dezhan HealthCare and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and Biwin Storage
The main advantage of trading using opposite Dezhan HealthCare and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.| Dezhan HealthCare vs. Kontour Medical Technology | Dezhan HealthCare vs. Road Environment Technology | Dezhan HealthCare vs. Hengkang Medical Group | Dezhan HealthCare vs. Silkroad Visual Technology |
| Biwin Storage vs. Xiandai Investment Co | Biwin Storage vs. Jiangsu Yueda Investment | Biwin Storage vs. Tieling Newcity Investment | Biwin Storage vs. Jointo Energy Investment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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