Correlation Between Guangzhou Haige and Dezhan HealthCare
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By analyzing existing cross correlation between Guangzhou Haige Communications and Dezhan HealthCare Co, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Dezhan HealthCare.
Diversification Opportunities for Guangzhou Haige and Dezhan HealthCare
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Dezhan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Dezhan HealthCare
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 2.31 times less risky than Dezhan HealthCare. The stock trades about -0.24 of its potential returns per unit of risk. The Dezhan HealthCare Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Dezhan HealthCare Co on October 30, 2024 and sell it today you would lose (19.00) from holding Dezhan HealthCare Co or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Dezhan HealthCare |
Guangzhou Haige and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Dezhan HealthCare
The main advantage of trading using opposite Guangzhou Haige and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Bus Online Co | Guangzhou Haige vs. Holitech Technology Co | Guangzhou Haige vs. Gome Telecom Equipment | Guangzhou Haige vs. Cultural Investment Holdings |
| Dezhan HealthCare vs. Kontour Medical Technology | Dezhan HealthCare vs. Road Environment Technology | Dezhan HealthCare vs. Hengkang Medical Group | Dezhan HealthCare vs. Silkroad Visual Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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