Correlation Between Yunnan Jianzhijia and Dezhan HealthCare
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Dezhan HealthCare Co, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Dezhan HealthCare.
Diversification Opportunities for Yunnan Jianzhijia and Dezhan HealthCare
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yunnan and Dezhan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Dezhan HealthCare
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.03 times less risky than Dezhan HealthCare. The stock trades about -0.04 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 371.00 in Dezhan HealthCare Co on November 2, 2024 and sell it today you would lose (71.00) from holding Dezhan HealthCare Co or give up 19.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Dezhan HealthCare |
Yunnan Jianzhijia and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Dezhan HealthCare
The main advantage of trading using opposite Yunnan Jianzhijia and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Nanjing Putian Telecommunications | Yunnan Jianzhijia vs. RoadMain T Co | Yunnan Jianzhijia vs. China Satellite Communications | Yunnan Jianzhijia vs. Hainan Haiqi Transportation |
| Dezhan HealthCare vs. Sino Platinum Metals Co | Dezhan HealthCare vs. Ningbo Homelink Eco iTech | Dezhan HealthCare vs. Tianshan Aluminum Group | Dezhan HealthCare vs. Quectel Wireless Solutions |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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