Correlation Between RoadMain T and Dezhan HealthCare
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By analyzing existing cross correlation between RoadMain T Co and Dezhan HealthCare Co, you can compare the effects of market volatilities on RoadMain T 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 RoadMain T with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Dezhan HealthCare.
Diversification Opportunities for RoadMain T and Dezhan HealthCare
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between RoadMain and Dezhan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and RoadMain T 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 RoadMain T Co 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 RoadMain T i.e., RoadMain T and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between RoadMain T and Dezhan HealthCare
Assuming the 90 days trading horizon RoadMain T Co is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, RoadMain T Co is 1.48 times less risky than Dezhan HealthCare. The stock trades about -0.18 of its potential returns per unit of risk. The Dezhan HealthCare Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Dezhan HealthCare Co on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Dezhan HealthCare Co or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Dezhan HealthCare Co
Performance |
| Timeline |
| RoadMain T |
| Dezhan HealthCare |
RoadMain T and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Dezhan HealthCare
The main advantage of trading using opposite RoadMain T and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T 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.| RoadMain T vs. Biwin Storage Technology | RoadMain T vs. PetroChina Co Ltd | RoadMain T vs. Industrial and Commercial | RoadMain T vs. China Construction Bank |
| Dezhan HealthCare vs. China Petroleum Chemical | Dezhan HealthCare vs. PetroChina Co Ltd | Dezhan HealthCare vs. China State Construction | Dezhan HealthCare vs. China Railway Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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