Correlation Between PKU HealthCare and Ningbo Jianan
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By analyzing existing cross correlation between PKU HealthCare Corp and Ningbo Jianan Electronics, you can compare the effects of market volatilities on PKU HealthCare and Ningbo Jianan 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 Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Ningbo Jianan.
Diversification Opportunities for PKU HealthCare and Ningbo Jianan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between PKU and Ningbo is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics 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 Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Ningbo Jianan go up and down completely randomly.
Pair Corralation between PKU HealthCare and Ningbo Jianan
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Ningbo Jianan. But the stock apears to be less risky and, when comparing its historical volatility, PKU HealthCare Corp is 1.47 times less risky than Ningbo Jianan. The stock trades about -0.08 of its potential returns per unit of risk. The Ningbo Jianan Electronics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,264 in Ningbo Jianan Electronics on August 29, 2024 and sell it today you would earn a total of 148.00 from holding Ningbo Jianan Electronics or generate 6.54% 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. Ningbo Jianan Electronics
Performance |
| Timeline |
| PKU HealthCare Corp |
| Ningbo Jianan Electronics |
PKU HealthCare and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Ningbo Jianan
The main advantage of trading using opposite PKU HealthCare and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Ningbo Jianan 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 Ningbo Jianan will offset losses from the drop in Ningbo Jianan's long position.| PKU HealthCare vs. Industrial and Commercial | PKU HealthCare vs. Agricultural Bank of | PKU HealthCare vs. China Construction Bank | PKU HealthCare vs. Bank of China |
| Ningbo Jianan vs. Industrial and Commercial | Ningbo Jianan vs. China Construction Bank | Ningbo Jianan vs. Agricultural Bank of | Ningbo Jianan vs. Bank of China |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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