Correlation Between Dezhan HealthCare and ROPEOK Technology
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By analyzing existing cross correlation between Dezhan HealthCare Co and ROPEOK Technology Group, you can compare the effects of market volatilities on Dezhan HealthCare and ROPEOK Technology 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 ROPEOK Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dezhan HealthCare and ROPEOK Technology.
Diversification Opportunities for Dezhan HealthCare and ROPEOK Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dezhan and ROPEOK is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dezhan HealthCare Co and ROPEOK Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROPEOK 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 ROPEOK Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROPEOK Technology has no effect on the direction of Dezhan HealthCare i.e., Dezhan HealthCare and ROPEOK Technology go up and down completely randomly.
Pair Corralation between Dezhan HealthCare and ROPEOK Technology
Assuming the 90 days trading horizon Dezhan HealthCare Co is expected to under-perform the ROPEOK Technology. But the stock apears to be less risky and, when comparing its historical volatility, Dezhan HealthCare Co is 1.08 times less risky than ROPEOK Technology. The stock trades about -0.63 of its potential returns per unit of risk. The ROPEOK Technology Group is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 987.00 in ROPEOK Technology Group on October 15, 2024 and sell it today you would lose (188.00) from holding ROPEOK Technology Group or give up 19.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dezhan HealthCare Co vs. ROPEOK Technology Group
Performance |
| Timeline |
| Dezhan HealthCare |
| ROPEOK Technology |
Dezhan HealthCare and ROPEOK Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dezhan HealthCare and ROPEOK Technology
The main advantage of trading using opposite Dezhan HealthCare and ROPEOK Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dezhan HealthCare position performs unexpectedly, ROPEOK Technology 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 ROPEOK Technology will offset losses from the drop in ROPEOK Technology's long position.| Dezhan HealthCare vs. Huatian Hotel Group | Dezhan HealthCare vs. Guangdong Xiongsu Technology | Dezhan HealthCare vs. Suzhou Oriental Semiconductor | Dezhan HealthCare vs. Guangzhou Dongfang Hotel |
| ROPEOK Technology vs. Dezhan HealthCare Co | ROPEOK Technology vs. Sanbo Hospital Management | ROPEOK Technology vs. Healthcare Co | ROPEOK Technology vs. China Reform 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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