Correlation Between PKU HealthCare and Jilin Jlu
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By analyzing existing cross correlation between PKU HealthCare Corp and Jilin Jlu Communication, you can compare the effects of market volatilities on PKU HealthCare and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Jilin Jlu.
Diversification Opportunities for PKU HealthCare and Jilin Jlu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PKU and Jilin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Jilin Jlu go up and down completely randomly.
Pair Corralation between PKU HealthCare and Jilin Jlu
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Jilin Jlu. But the stock apears to be less risky and, when comparing its historical volatility, PKU HealthCare Corp is 1.35 times less risky than Jilin Jlu. The stock trades about -0.02 of its potential returns per unit of risk. The Jilin Jlu Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Jilin Jlu Communication on September 3, 2024 and sell it today you would earn a total of 161.00 from holding Jilin Jlu Communication or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Jilin Jlu Communication
Performance |
| Timeline |
| PKU HealthCare Corp |
| Jilin Jlu Communication |
PKU HealthCare and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Jilin Jlu
The main advantage of trading using opposite PKU HealthCare and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu'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 |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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