Correlation Between PKU HealthCare and ChengDu Hi
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By analyzing existing cross correlation between PKU HealthCare Corp and ChengDu Hi Tech Development, you can compare the effects of market volatilities on PKU HealthCare and ChengDu Hi 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 ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and ChengDu Hi.
Diversification Opportunities for PKU HealthCare and ChengDu Hi
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKU and ChengDu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech 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 ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and ChengDu Hi go up and down completely randomly.
Pair Corralation between PKU HealthCare and ChengDu Hi
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the ChengDu Hi. In addition to that, PKU HealthCare is 1.13 times more volatile than ChengDu Hi Tech Development. It trades about -0.26 of its total potential returns per unit of risk. ChengDu Hi Tech Development is currently generating about -0.06 per unit of volatility. If you would invest 6,191 in ChengDu Hi Tech Development on October 25, 2024 and sell it today you would lose (396.00) from holding ChengDu Hi Tech Development or give up 6.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
PKU HealthCare Corp vs. ChengDu Hi Tech Development
Performance |
Timeline |
PKU HealthCare Corp |
ChengDu Hi Tech |
PKU HealthCare and ChengDu Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PKU HealthCare and ChengDu Hi
The main advantage of trading using opposite PKU HealthCare and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.PKU HealthCare vs. Agricultural Bank of | PKU HealthCare vs. Industrial and Commercial | PKU HealthCare vs. Bank of China | PKU HealthCare vs. China Construction Bank |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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