Correlation Between Shaanxi Meineng and Dezhan HealthCare
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Dezhan HealthCare Co, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Dezhan HealthCare.
Diversification Opportunities for Shaanxi Meineng and Dezhan HealthCare
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Dezhan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Dezhan HealthCare
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the Dezhan HealthCare. In addition to that, Shaanxi Meineng is 1.06 times more volatile than Dezhan HealthCare Co. It trades about -0.03 of its total potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.0 per unit of volatility. If you would invest 368.00 in Dezhan HealthCare Co on August 28, 2024 and sell it today you would lose (51.00) from holding Dezhan HealthCare Co or give up 13.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Dezhan HealthCare |
Shaanxi Meineng and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Dezhan HealthCare
The main advantage of trading using opposite Shaanxi Meineng and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. Cambricon Technologies Corp | Shaanxi Meineng vs. Loongson Technology Corp | Shaanxi Meineng vs. Chongqing Road Bridge | Shaanxi Meineng vs. Shenzhen Fortune Trend |
| Dezhan HealthCare vs. Shaanxi Meineng Clean | Dezhan HealthCare vs. Gansu Jiu Steel | Dezhan HealthCare vs. Hang Xiao Steel | Dezhan HealthCare vs. Jiangxi JDL Environmental |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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