Correlation Between Zhejiang Dahua and Chison Medical
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By analyzing existing cross correlation between Zhejiang Dahua Technology and Chison Medical Technologies, you can compare the effects of market volatilities on Zhejiang Dahua and Chison Medical 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 Zhejiang Dahua with a short position of Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Dahua and Chison Medical.
Diversification Opportunities for Zhejiang Dahua and Chison Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Chison is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Dahua Technology and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn and Zhejiang Dahua 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 Zhejiang Dahua Technology are associated (or correlated) with Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Zhejiang Dahua i.e., Zhejiang Dahua and Chison Medical go up and down completely randomly.
Pair Corralation between Zhejiang Dahua and Chison Medical
Assuming the 90 days trading horizon Zhejiang Dahua Technology is expected to generate 0.72 times more return on investment than Chison Medical. However, Zhejiang Dahua Technology is 1.39 times less risky than Chison Medical. It trades about 0.01 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.01 per unit of risk. If you would invest 1,628 in Zhejiang Dahua Technology on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Zhejiang Dahua Technology or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Dahua Technology vs. Chison Medical Technologies
Performance |
| Timeline |
| Zhejiang Dahua Technology |
| Chison Medical Techn |
Zhejiang Dahua and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Dahua and Chison Medical
The main advantage of trading using opposite Zhejiang Dahua and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Dahua position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Zhejiang Dahua vs. Pengxin International Mining | Zhejiang Dahua vs. Suzhou Douson Drilling | Zhejiang Dahua vs. China Minmetals Rare | Zhejiang Dahua vs. Offshore Oil Engineering |
| Chison Medical vs. Nanjing Putian Telecommunications | Chison Medical vs. Shenzhen Hifuture Electric | Chison Medical vs. Tianjin Realty Development | Chison Medical vs. Shenyang Huitian Thermal |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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