Correlation Between North Huajin and PKU HealthCare
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By analyzing existing cross correlation between North Huajin Chemical and PKU HealthCare Corp, you can compare the effects of market volatilities on North Huajin and PKU 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 North Huajin with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and PKU HealthCare.
Diversification Opportunities for North Huajin and PKU HealthCare
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and PKU is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp and North Huajin 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 North Huajin Chemical are associated (or correlated) with PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of North Huajin i.e., North Huajin and PKU HealthCare go up and down completely randomly.
Pair Corralation between North Huajin and PKU HealthCare
Assuming the 90 days trading horizon North Huajin Chemical is expected to generate 1.44 times more return on investment than PKU HealthCare. However, North Huajin is 1.44 times more volatile than PKU HealthCare Corp. It trades about 0.09 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.08 per unit of risk. If you would invest 447.00 in North Huajin Chemical on September 19, 2024 and sell it today you would earn a total of 49.00 from holding North Huajin Chemical or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. PKU HealthCare Corp
Performance |
| Timeline |
| North Huajin Chemical |
| PKU HealthCare Corp |
North Huajin and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and PKU HealthCare
The main advantage of trading using opposite North Huajin and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, PKU 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 PKU HealthCare will offset losses from the drop in PKU HealthCare's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| PKU HealthCare vs. Shenyang Chemical Industry | PKU HealthCare vs. North Huajin Chemical | PKU HealthCare vs. Dymatic Chemicals | PKU HealthCare vs. Pengxin International Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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