Correlation Between Zhejiang JIULI and Dezhan HealthCare
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Dezhan HealthCare Co, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Dezhan HealthCare.
Diversification Opportunities for Zhejiang JIULI and Dezhan HealthCare
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Dezhan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Zhejiang JIULI 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 JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Dezhan HealthCare
Assuming the 90 days trading horizon Zhejiang JIULI is expected to generate 1.31 times less return on investment than Dezhan HealthCare. But when comparing it to its historical volatility, Zhejiang JIULI Hi tech is 1.91 times less risky than Dezhan HealthCare. It trades about 0.13 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Dezhan HealthCare Co on October 18, 2024 and sell it today you would earn a total of 65.00 from holding Dezhan HealthCare Co or generate 26.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Dezhan HealthCare |
Zhejiang JIULI and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Dezhan HealthCare
The main advantage of trading using opposite Zhejiang JIULI and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Hengdian Entertainment Co | Zhejiang JIULI vs. Thinkingdom Media Group | Zhejiang JIULI vs. Humanwell Healthcare Group | Zhejiang JIULI vs. Guangdong Jinma Entertainment |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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