Correlation Between 159681 and Dezhan HealthCare
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By analyzing existing cross correlation between 159681 and Dezhan HealthCare Co, you can compare the effects of market volatilities on 159681 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 159681 with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Dezhan HealthCare.
Diversification Opportunities for 159681 and Dezhan HealthCare
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between 159681 and Dezhan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and 159681 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 159681 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 159681 i.e., 159681 and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between 159681 and Dezhan HealthCare
Assuming the 90 days trading horizon 159681 is expected to generate 0.24 times more return on investment than Dezhan HealthCare. However, 159681 is 4.08 times less risky than Dezhan HealthCare. It trades about -0.38 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about -0.16 per unit of risk. If you would invest 99.00 in 159681 on October 10, 2024 and sell it today you would lose (11.00) from holding 159681 or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
159681 vs. Dezhan HealthCare Co
Performance |
| Timeline |
| 159681 |
| Dezhan HealthCare |
159681 and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Dezhan HealthCare
The main advantage of trading using opposite 159681 and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 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.The idea behind 159681 and Dezhan HealthCare Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dezhan HealthCare vs. Ming Yang Smart | Dezhan HealthCare vs. 159681 | Dezhan HealthCare vs. 159005 | Dezhan HealthCare vs. Loctek Ergonomic 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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