Correlation Between Shantui Construction and PKU HealthCare
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By analyzing existing cross correlation between Shantui Construction Machinery and PKU HealthCare Corp, you can compare the effects of market volatilities on Shantui Construction 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 Shantui Construction with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and PKU HealthCare.
Diversification Opportunities for Shantui Construction and PKU HealthCare
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantui and PKU is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery 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 Shantui Construction 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 Shantui Construction Machinery 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 Shantui Construction i.e., Shantui Construction and PKU HealthCare go up and down completely randomly.
Pair Corralation between Shantui Construction and PKU HealthCare
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 1.18 times more return on investment than PKU HealthCare. However, Shantui Construction is 1.18 times more volatile than PKU HealthCare Corp. It trades about 0.11 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.01 per unit of risk. If you would invest 492.00 in Shantui Construction Machinery on September 4, 2024 and sell it today you would earn a total of 550.00 from holding Shantui Construction Machinery or generate 111.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. PKU HealthCare Corp
Performance |
| Timeline |
| Shantui Construction |
| PKU HealthCare Corp |
Shantui Construction and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and PKU HealthCare
The main advantage of trading using opposite Shantui Construction and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction 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.| Shantui Construction vs. Bank of China | Shantui Construction vs. Kweichow Moutai Co | Shantui Construction vs. PetroChina Co Ltd | Shantui Construction vs. Bank of Communications |
| PKU HealthCare vs. Shantui Construction Machinery | PKU HealthCare vs. Chinese Universe Publishing | PKU HealthCare vs. China Railway Construction | PKU HealthCare vs. Shenzhen Zhongzhuang Construction |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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