Correlation Between Meinian Onehealth and Dezhan HealthCare
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By analyzing existing cross correlation between Meinian Onehealth Healthcare and Dezhan HealthCare Co, you can compare the effects of market volatilities on Meinian Onehealth 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 Meinian Onehealth with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meinian Onehealth and Dezhan HealthCare.
Diversification Opportunities for Meinian Onehealth and Dezhan HealthCare
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Meinian and Dezhan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Meinian Onehealth Healthcare and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Meinian Onehealth 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 Meinian Onehealth Healthcare 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 Meinian Onehealth i.e., Meinian Onehealth and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Meinian Onehealth and Dezhan HealthCare
Assuming the 90 days trading horizon Meinian Onehealth is expected to generate 1.69 times less return on investment than Dezhan HealthCare. But when comparing it to its historical volatility, Meinian Onehealth Healthcare is 1.39 times less risky than Dezhan HealthCare. It trades about 0.08 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Dezhan HealthCare Co on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Dezhan HealthCare Co or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meinian Onehealth Healthcare vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Meinian Onehealth |
| Dezhan HealthCare |
Meinian Onehealth and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meinian Onehealth and Dezhan HealthCare
The main advantage of trading using opposite Meinian Onehealth and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meinian Onehealth 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.| Meinian Onehealth vs. Shenzhen MYS Environmental | Meinian Onehealth vs. AVIC Fund Management | Meinian Onehealth vs. Shenzhen Bingchuan Network | Meinian Onehealth vs. Penghua Shenzhen Energy |
| Dezhan HealthCare vs. China Petroleum Chemical | Dezhan HealthCare vs. PetroChina Co Ltd | Dezhan HealthCare vs. China State Construction | Dezhan HealthCare vs. China Railway Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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