Correlation Between Cathay Biotech and Dezhan HealthCare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cathay Biotech and Dezhan HealthCare Co, you can compare the effects of market volatilities on Cathay Biotech 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 Cathay Biotech with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Biotech and Dezhan HealthCare.
Diversification Opportunities for Cathay Biotech and Dezhan HealthCare
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cathay and Dezhan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Biotech and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Cathay Biotech 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 Cathay Biotech 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 Cathay Biotech i.e., Cathay Biotech and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Cathay Biotech and Dezhan HealthCare
Assuming the 90 days trading horizon Cathay Biotech is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Cathay Biotech is 1.17 times less risky than Dezhan HealthCare. The stock trades about -0.02 of its potential returns per unit of risk. The Dezhan HealthCare Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Dezhan HealthCare Co on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Dezhan HealthCare Co or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Biotech vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Cathay Biotech |
| Dezhan HealthCare |
Cathay Biotech and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Biotech and Dezhan HealthCare
The main advantage of trading using opposite Cathay Biotech and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Biotech 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.| Cathay Biotech vs. Suofeiya Home Collection | Cathay Biotech vs. Meinian Onehealth Healthcare | Cathay Biotech vs. Dezhan HealthCare Co | Cathay Biotech vs. PKU HealthCare Corp |
| Dezhan HealthCare vs. BeiGene | Dezhan HealthCare vs. Kweichow Moutai Co | Dezhan HealthCare vs. Beijing Roborock Technology | Dezhan HealthCare vs. G bits Network Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |