Correlation Between Fujian Newland and Dezhan HealthCare
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By analyzing existing cross correlation between Fujian Newland Computer and Dezhan HealthCare Co, you can compare the effects of market volatilities on Fujian Newland and Dezhan HealthCare 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 Fujian Newland with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Dezhan HealthCare.
Diversification Opportunities for Fujian Newland and Dezhan HealthCare
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Dezhan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Fujian Newland 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 Fujian Newland Computer are associated (or correlated) with Dezhan HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dezhan HealthCare has no effect on the direction of Fujian Newland i.e., Fujian Newland and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Fujian Newland and Dezhan HealthCare
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.86 times more return on investment than Dezhan HealthCare. However, Fujian Newland Computer is 1.17 times less risky than Dezhan HealthCare. It trades about 0.18 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.09 per unit of risk. If you would invest 1,200 in Fujian Newland Computer on October 18, 2024 and sell it today you would earn a total of 760.00 from holding Fujian Newland Computer or generate 63.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Fujian Newland Computer |
| Dezhan HealthCare |
Fujian Newland and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Dezhan HealthCare
The main advantage of trading using opposite Fujian Newland and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Dezhan HealthCare 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 Dezhan HealthCare will offset losses from the drop in Dezhan HealthCare's long position.| Fujian Newland vs. China Life Insurance | Fujian Newland vs. Cinda Securities Co | Fujian Newland vs. Piotech Inc A | Fujian Newland vs. Dongxing Sec Co |
| Dezhan HealthCare vs. Zhejiang JIULI Hi tech | Dezhan HealthCare vs. Fujian Newland Computer | Dezhan HealthCare vs. Tianjin Hi Tech Development | Dezhan HealthCare vs. State Grid InformationCommunication |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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