Correlation Between PKU HealthCare and SUNSEA Telecommunicatio
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By analyzing existing cross correlation between PKU HealthCare Corp and SUNSEA Telecommunications Co, you can compare the effects of market volatilities on PKU HealthCare and SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and SUNSEA Telecommunicatio.
Diversification Opportunities for PKU HealthCare and SUNSEA Telecommunicatio
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PKU and SUNSEA is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and SUNSEA Telecommunications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNSEA Telecommunicatio has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and SUNSEA Telecommunicatio go up and down completely randomly.
Pair Corralation between PKU HealthCare and SUNSEA Telecommunicatio
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the SUNSEA Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, PKU HealthCare Corp is 1.38 times less risky than SUNSEA Telecommunicatio. The stock trades about -0.26 of its potential returns per unit of risk. The SUNSEA Telecommunications Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 859.00 in SUNSEA Telecommunications Co on October 25, 2024 and sell it today you would earn a total of 99.00 from holding SUNSEA Telecommunications Co or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. SUNSEA Telecommunications Co
Performance |
| Timeline |
| PKU HealthCare Corp |
| SUNSEA Telecommunicatio |
PKU HealthCare and SUNSEA Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and SUNSEA Telecommunicatio
The main advantage of trading using opposite PKU HealthCare and SUNSEA Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, SUNSEA Telecommunicatio 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 SUNSEA Telecommunicatio will offset losses from the drop in SUNSEA Telecommunicatio'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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