Correlation Between PKU HealthCare and Xian International
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By analyzing existing cross correlation between PKU HealthCare Corp and Xian International Medical, you can compare the effects of market volatilities on PKU HealthCare and Xian International 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 PKU HealthCare with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Xian International.
Diversification Opportunities for PKU HealthCare and Xian International
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PKU and Xian is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and PKU HealthCare 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 PKU HealthCare Corp are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Xian International go up and down completely randomly.
Pair Corralation between PKU HealthCare and Xian International
Assuming the 90 days trading horizon PKU HealthCare is expected to generate 2.58 times less return on investment than Xian International. But when comparing it to its historical volatility, PKU HealthCare Corp is 1.84 times less risky than Xian International. It trades about 0.14 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Xian International Medical on September 4, 2024 and sell it today you would earn a total of 87.00 from holding Xian International Medical or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Xian International Medical
Performance |
| Timeline |
| PKU HealthCare Corp |
| Xian International |
PKU HealthCare and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Xian International
The main advantage of trading using opposite PKU HealthCare and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| PKU HealthCare vs. Shantui Construction Machinery | PKU HealthCare vs. Chinese Universe Publishing | PKU HealthCare vs. China Railway Construction | PKU HealthCare vs. Shenzhen Zhongzhuang Construction |
| Xian International vs. Industrial and Commercial | Xian International vs. Agricultural Bank of | Xian International vs. China Construction Bank | Xian International vs. Bank of China |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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