Correlation Between PKU HealthCare and Impulse Qingdao
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By analyzing existing cross correlation between PKU HealthCare Corp and Impulse Qingdao Health, you can compare the effects of market volatilities on PKU HealthCare and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Impulse Qingdao.
Diversification Opportunities for PKU HealthCare and Impulse Qingdao
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PKU and Impulse is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Impulse Qingdao go up and down completely randomly.
Pair Corralation between PKU HealthCare and Impulse Qingdao
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Impulse Qingdao. But the stock apears to be less risky and, when comparing its historical volatility, PKU HealthCare Corp is 1.19 times less risky than Impulse Qingdao. The stock trades about -0.02 of its potential returns per unit of risk. The Impulse Qingdao Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,334 in Impulse Qingdao Health on September 3, 2024 and sell it today you would earn a total of 745.00 from holding Impulse Qingdao Health or generate 55.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Impulse Qingdao Health
Performance |
| Timeline |
| PKU HealthCare Corp |
| Impulse Qingdao Health |
PKU HealthCare and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Impulse Qingdao
The main advantage of trading using opposite PKU HealthCare and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao's long position.| PKU HealthCare vs. Chengdu Kanghua Biological | PKU HealthCare vs. Beijing Wantai Biological | PKU HealthCare vs. Suzhou Novoprotein Scientific | PKU HealthCare vs. Aluminum Corp of |
| Impulse Qingdao vs. PetroChina Co Ltd | Impulse Qingdao vs. China Mobile Limited | Impulse Qingdao vs. Industrial and Commercial | Impulse Qingdao vs. China Life 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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