Correlation Between Ningbo Fangzheng and Dezhan HealthCare
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Dezhan HealthCare Co, you can compare the effects of market volatilities on Ningbo Fangzheng 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 Ningbo Fangzheng with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Dezhan HealthCare.
Diversification Opportunities for Ningbo Fangzheng and Dezhan HealthCare
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Dezhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Ningbo Fangzheng 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 Ningbo Fangzheng Automobile 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 Ningbo Fangzheng i.e., Ningbo Fangzheng and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Dezhan HealthCare
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Dezhan HealthCare. In addition to that, Ningbo Fangzheng is 1.22 times more volatile than Dezhan HealthCare Co. It trades about -0.01 of its total potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.05 per unit of volatility. If you would invest 332.00 in Dezhan HealthCare Co on September 14, 2024 and sell it today you would earn a total of 88.00 from holding Dezhan HealthCare Co or generate 26.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Dezhan HealthCare |
Ningbo Fangzheng and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Dezhan HealthCare
The main advantage of trading using opposite Ningbo Fangzheng and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng 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.| Ningbo Fangzheng vs. BeiGene | Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Beijing Roborock Technology | Ningbo Fangzheng vs. G bits Network Technology |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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