Correlation Between Suofeiya Home and Dezhan HealthCare
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By analyzing existing cross correlation between Suofeiya Home Collection and Dezhan HealthCare Co, you can compare the effects of market volatilities on Suofeiya Home 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 Suofeiya Home with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Dezhan HealthCare.
Diversification Opportunities for Suofeiya Home and Dezhan HealthCare
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suofeiya and Dezhan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Suofeiya Home 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 Suofeiya Home Collection 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 Suofeiya Home i.e., Suofeiya Home and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Suofeiya Home and Dezhan HealthCare
Assuming the 90 days trading horizon Suofeiya Home is expected to generate 12.39 times less return on investment than Dezhan HealthCare. But when comparing it to its historical volatility, Suofeiya Home Collection is 1.97 times less risky than Dezhan HealthCare. It trades about 0.06 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 297.00 in Dezhan HealthCare Co on September 15, 2024 and sell it today you would earn a total of 165.00 from holding Dezhan HealthCare Co or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Suofeiya Home Collection |
| Dezhan HealthCare |
Suofeiya Home and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Dezhan HealthCare
The main advantage of trading using opposite Suofeiya Home and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home 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.| Suofeiya Home vs. Lutian Machinery Co | Suofeiya Home vs. China Longyuan Power | Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. Bank of China |
| Dezhan HealthCare vs. BeiGene | Dezhan HealthCare vs. Kweichow Moutai Co | Dezhan HealthCare vs. Beijing Roborock Technology | Dezhan HealthCare vs. G bits Network 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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