Correlation Between Beijing Wantai and Dezhan HealthCare
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By analyzing existing cross correlation between Beijing Wantai Biological and Dezhan HealthCare Co, you can compare the effects of market volatilities on Beijing Wantai 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 Beijing Wantai with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Dezhan HealthCare.
Diversification Opportunities for Beijing Wantai and Dezhan HealthCare
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Dezhan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Beijing Wantai 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 Beijing Wantai Biological 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 Beijing Wantai i.e., Beijing Wantai and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Beijing Wantai and Dezhan HealthCare
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to under-perform the Dezhan HealthCare. In addition to that, Beijing Wantai is 1.03 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 0.0 per unit of volatility. If you would invest 372.00 in Dezhan HealthCare Co on September 3, 2024 and sell it today you would lose (53.00) from holding Dezhan HealthCare Co or give up 14.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Beijing Wantai Biological |
| Dezhan HealthCare |
Beijing Wantai and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Dezhan HealthCare
The main advantage of trading using opposite Beijing Wantai and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai 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.| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
| Dezhan HealthCare vs. Chengdu Kanghua Biological | Dezhan HealthCare vs. Beijing Wantai Biological | Dezhan HealthCare vs. Suzhou Novoprotein Scientific | Dezhan HealthCare vs. Aluminum Corp of |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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