Correlation Between PKU HealthCare and Xiandai Investment
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By analyzing existing cross correlation between PKU HealthCare Corp and Xiandai Investment Co, you can compare the effects of market volatilities on PKU HealthCare and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Xiandai Investment.
Diversification Opportunities for PKU HealthCare and Xiandai Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKU and Xiandai is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Xiandai Investment go up and down completely randomly.
Pair Corralation between PKU HealthCare and Xiandai Investment
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Xiandai Investment. In addition to that, PKU HealthCare is 1.59 times more volatile than Xiandai Investment Co. It trades about -0.01 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.01 per unit of volatility. If you would invest 410.00 in Xiandai Investment Co on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Xiandai Investment Co or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Xiandai Investment Co
Performance |
| Timeline |
| PKU HealthCare Corp |
| Xiandai Investment |
PKU HealthCare and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Xiandai Investment
The main advantage of trading using opposite PKU HealthCare and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| PKU HealthCare vs. Ming Yang Smart | PKU HealthCare vs. 159681 | PKU HealthCare vs. 159005 | PKU HealthCare vs. Loctek Ergonomic Technology |
| Xiandai Investment vs. PetroChina Co Ltd | Xiandai Investment vs. China Mobile Limited | Xiandai Investment vs. CNOOC Limited | Xiandai Investment vs. Ping An Insurance |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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