Correlation Between DC HEALTHCARE and Dufu Tech
Can any of the company-specific risk be diversified away by investing in both DC HEALTHCARE and Dufu Tech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DC HEALTHCARE and Dufu Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DC HEALTHCARE HOLDINGS and Dufu Tech Corp, you can compare the effects of market volatilities on DC HEALTHCARE and Dufu Tech 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 DC HEALTHCARE with a short position of Dufu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of DC HEALTHCARE and Dufu Tech.
Diversification Opportunities for DC HEALTHCARE and Dufu Tech
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0283 and Dufu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DC HEALTHCARE HOLDINGS and Dufu Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dufu Tech Corp and DC HEALTHCARE 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 DC HEALTHCARE HOLDINGS are associated (or correlated) with Dufu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dufu Tech Corp has no effect on the direction of DC HEALTHCARE i.e., DC HEALTHCARE and Dufu Tech go up and down completely randomly.
Pair Corralation between DC HEALTHCARE and Dufu Tech
Assuming the 90 days trading horizon DC HEALTHCARE HOLDINGS is expected to generate 1.22 times more return on investment than Dufu Tech. However, DC HEALTHCARE is 1.22 times more volatile than Dufu Tech Corp. It trades about -0.12 of its potential returns per unit of risk. Dufu Tech Corp is currently generating about -0.3 per unit of risk. If you would invest 18.00 in DC HEALTHCARE HOLDINGS on November 4, 2024 and sell it today you would lose (1.00) from holding DC HEALTHCARE HOLDINGS or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DC HEALTHCARE HOLDINGS vs. Dufu Tech Corp
Performance |
| Timeline |
| DC HEALTHCARE HOLDINGS |
| Dufu Tech Corp |
DC HEALTHCARE and Dufu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DC HEALTHCARE and Dufu Tech
The main advantage of trading using opposite DC HEALTHCARE and Dufu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DC HEALTHCARE position performs unexpectedly, Dufu Tech 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 Dufu Tech will offset losses from the drop in Dufu Tech's long position.| DC HEALTHCARE vs. Media Prima Bhd | DC HEALTHCARE vs. Alliance Financial Group | DC HEALTHCARE vs. Oriental Food Industries | DC HEALTHCARE vs. Public Bank Bhd |
| Dufu Tech vs. YX Precious Metals | Dufu Tech vs. Mycron Steel Bhd | Dufu Tech vs. Sports Toto Berhad | Dufu Tech vs. ECM Libra Financial |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |