Correlation Between PKU HealthCare and Shenzhen Aisidi
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By analyzing existing cross correlation between PKU HealthCare Corp and Shenzhen Aisidi Co, you can compare the effects of market volatilities on PKU HealthCare and Shenzhen Aisidi 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 Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Shenzhen Aisidi.
Diversification Opportunities for PKU HealthCare and Shenzhen Aisidi
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PKU and Shenzhen is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between PKU HealthCare and Shenzhen Aisidi
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Shenzhen Aisidi. But the stock apears to be less risky and, when comparing its historical volatility, PKU HealthCare Corp is 1.12 times less risky than Shenzhen Aisidi. The stock trades about -0.26 of its potential returns per unit of risk. The Shenzhen Aisidi Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,410 in Shenzhen Aisidi Co on October 25, 2024 and sell it today you would lose (130.00) from holding Shenzhen Aisidi Co or give up 9.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| PKU HealthCare Corp |
| Shenzhen Aisidi |
PKU HealthCare and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Shenzhen Aisidi
The main advantage of trading using opposite PKU HealthCare and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi'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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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