Correlation Between Shanghai Rural and Dezhan HealthCare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Rural Commercial and Dezhan HealthCare Co, you can compare the effects of market volatilities on Shanghai Rural 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 Shanghai Rural with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rural and Dezhan HealthCare.
Diversification Opportunities for Shanghai Rural and Dezhan HealthCare
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Dezhan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rural Commercial and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Shanghai Rural 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 Shanghai Rural Commercial 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 Shanghai Rural i.e., Shanghai Rural and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Shanghai Rural and Dezhan HealthCare
Assuming the 90 days trading horizon Shanghai Rural is expected to generate 2.34 times less return on investment than Dezhan HealthCare. But when comparing it to its historical volatility, Shanghai Rural Commercial is 1.98 times less risky than Dezhan HealthCare. It trades about 0.23 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 246.00 in Dezhan HealthCare Co on September 12, 2024 and sell it today you would earn a total of 176.00 from holding Dezhan HealthCare Co or generate 71.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rural Commercial vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Shanghai Rural Commercial |
| Dezhan HealthCare |
Shanghai Rural and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rural and Dezhan HealthCare
The main advantage of trading using opposite Shanghai Rural and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rural 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.| Shanghai Rural vs. Shenyang Chemical Industry | Shanghai Rural vs. Xilong Chemical Co | Shanghai Rural vs. HaiXin Foods Co | Shanghai Rural vs. Miracll Chemicals Co |
| Dezhan HealthCare vs. Cultural Investment Holdings | Dezhan HealthCare vs. Gome Telecom Equipment | Dezhan HealthCare vs. Holitech Technology Co | Dezhan HealthCare vs. Zotye Automobile Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |