Correlation Between PKU HealthCare and Guangzhou Jinyi
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By analyzing existing cross correlation between PKU HealthCare Corp and Guangzhou Jinyi Media, you can compare the effects of market volatilities on PKU HealthCare and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Guangzhou Jinyi.
Diversification Opportunities for PKU HealthCare and Guangzhou Jinyi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PKU and Guangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between PKU HealthCare and Guangzhou Jinyi
Assuming the 90 days trading horizon PKU HealthCare is expected to generate 22.64 times less return on investment than Guangzhou Jinyi. But when comparing it to its historical volatility, PKU HealthCare Corp is 1.78 times less risky than Guangzhou Jinyi. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Guangzhou Jinyi Media on September 13, 2024 and sell it today you would earn a total of 183.00 from holding Guangzhou Jinyi Media or generate 25.96% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| PKU HealthCare Corp |
| Guangzhou Jinyi Media |
PKU HealthCare and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Guangzhou Jinyi
The main advantage of trading using opposite PKU HealthCare and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| PKU HealthCare vs. BeiGene | PKU HealthCare vs. Kweichow Moutai Co | PKU HealthCare vs. Beijing Roborock Technology | PKU HealthCare vs. G bits Network Technology |
| Guangzhou Jinyi vs. PKU HealthCare Corp | Guangzhou Jinyi vs. Shenzhen Topway Video | Guangzhou Jinyi vs. Kuangda Technology Group | Guangzhou Jinyi vs. Niutech Environment Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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