Correlation Between PKU HealthCare and Hengli Industrial
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By analyzing existing cross correlation between PKU HealthCare Corp and Hengli Industrial Development, you can compare the effects of market volatilities on PKU HealthCare and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Hengli Industrial.
Diversification Opportunities for PKU HealthCare and Hengli Industrial
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKU and Hengli is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Hengli Industrial go up and down completely randomly.
Pair Corralation between PKU HealthCare and Hengli Industrial
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Hengli Industrial. In addition to that, PKU HealthCare is 1.57 times more volatile than Hengli Industrial Development. It trades about -0.06 of its total potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.06 per unit of volatility. If you would invest 233.00 in Hengli Industrial Development on October 12, 2024 and sell it today you would lose (11.00) from holding Hengli Industrial Development or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Hengli Industrial Development
Performance |
| Timeline |
| PKU HealthCare Corp |
| Hengli Industrial |
PKU HealthCare and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Hengli Industrial
The main advantage of trading using opposite PKU HealthCare and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| PKU HealthCare vs. Zhengzhou Coal Mining | PKU HealthCare vs. Wuhan Yangtze Communication | PKU HealthCare vs. Ningbo Jintian Copper | PKU HealthCare vs. Tongyu Communication |
| Hengli Industrial vs. PKU HealthCare Corp | Hengli Industrial vs. De Rucci Healthy | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Lotus Health Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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