Correlation Between Suzhou Oriental and Dezhan HealthCare
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Dezhan HealthCare Co, you can compare the effects of market volatilities on Suzhou Oriental 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 Suzhou Oriental with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Dezhan HealthCare.
Diversification Opportunities for Suzhou Oriental and Dezhan HealthCare
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and Dezhan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Suzhou Oriental 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 Suzhou Oriental Semiconductor 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 Suzhou Oriental i.e., Suzhou Oriental and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Dezhan HealthCare
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the Dezhan HealthCare. In addition to that, Suzhou Oriental is 1.32 times more volatile than Dezhan HealthCare Co. It trades about -0.06 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 364.00 in Dezhan HealthCare Co on October 15, 2024 and sell it today you would lose (67.00) from holding Dezhan HealthCare Co or give up 18.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Dezhan HealthCare |
Suzhou Oriental and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Dezhan HealthCare
The main advantage of trading using opposite Suzhou Oriental and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental 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.| Suzhou Oriental vs. Jiangsu Financial Leasing | Suzhou Oriental vs. Bohai Leasing Co | Suzhou Oriental vs. ButOne Information Corp | Suzhou Oriental vs. Sublime China Information |
| Dezhan HealthCare vs. Humanwell Healthcare Group | Dezhan HealthCare vs. Jiangnan Mould Plastic | Dezhan HealthCare vs. Advanced Technology Materials | Dezhan HealthCare vs. Konfoong Materials International |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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