Correlation Between Shanghai Rongtai and Dezhan HealthCare
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By analyzing existing cross correlation between Shanghai Rongtai Health and Dezhan HealthCare Co, you can compare the effects of market volatilities on Shanghai Rongtai 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 Rongtai with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Dezhan HealthCare.
Diversification Opportunities for Shanghai Rongtai and Dezhan HealthCare
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Dezhan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health 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 Rongtai 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 Rongtai Health 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 Rongtai i.e., Shanghai Rongtai and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Dezhan HealthCare
Assuming the 90 days trading horizon Shanghai Rongtai Health is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Rongtai Health is 1.16 times less risky than Dezhan HealthCare. The stock trades about -0.01 of its potential returns per unit of risk. The Dezhan HealthCare Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Dezhan HealthCare |
Shanghai Rongtai and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Dezhan HealthCare
The main advantage of trading using opposite Shanghai Rongtai and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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 Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. Industrial and Commercial | Shanghai Rongtai vs. China Life Insurance |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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