Correlation Between PKU HealthCare and Shenzhen
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By analyzing existing cross correlation between PKU HealthCare Corp and Shenzhen AV Display Co, you can compare the effects of market volatilities on PKU HealthCare and Shenzhen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Shenzhen.
Diversification Opportunities for PKU HealthCare and Shenzhen
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKU and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Shenzhen go up and down completely randomly.
Pair Corralation between PKU HealthCare and Shenzhen
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 1.47 times more return on investment than Shenzhen. However, PKU HealthCare is 1.47 times more volatile than Shenzhen AV Display Co. It trades about -0.02 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.15 per unit of risk. If you would invest 660.00 in PKU HealthCare Corp on October 11, 2024 and sell it today you would lose (25.00) from holding PKU HealthCare Corp or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Shenzhen AV Display Co
Performance |
| Timeline |
| PKU HealthCare Corp |
| Shenzhen AV Display |
PKU HealthCare and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Shenzhen
The main advantage of trading using opposite PKU HealthCare and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| PKU HealthCare vs. Xiandai Investment Co | PKU HealthCare vs. Jointo Energy Investment | PKU HealthCare vs. Kunwu Jiuding Investment | PKU HealthCare vs. Zhejiang Construction Investment |
| Shenzhen vs. Zhongshan Public Utilities | Shenzhen vs. Kingsignal Technology Co | Shenzhen vs. Kuangda Technology Group | Shenzhen vs. CIMC Vehicles Co |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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