Correlation Between PKU HealthCare and Hangzhou Minsheng
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By analyzing existing cross correlation between PKU HealthCare Corp and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on PKU HealthCare and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Hangzhou Minsheng.
Diversification Opportunities for PKU HealthCare and Hangzhou Minsheng
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKU and Hangzhou is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between PKU HealthCare and Hangzhou Minsheng
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 0.7 times more return on investment than Hangzhou Minsheng. However, PKU HealthCare Corp is 1.42 times less risky than Hangzhou Minsheng. It trades about -0.01 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.07 per unit of risk. If you would invest 762.00 in PKU HealthCare Corp on October 25, 2024 and sell it today you would lose (178.00) from holding PKU HealthCare Corp or give up 23.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 69.85% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| PKU HealthCare Corp |
| Hangzhou Minsheng |
PKU HealthCare and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Hangzhou Minsheng
The main advantage of trading using opposite PKU HealthCare and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| PKU HealthCare vs. Ming Yang Smart | PKU HealthCare vs. 159681 | PKU HealthCare vs. 159005 | PKU HealthCare vs. Loctek Ergonomic Technology |
| Hangzhou Minsheng vs. Bingo Software Co | Hangzhou Minsheng vs. Linkage Software Co | Hangzhou Minsheng vs. Quectel Wireless Solutions | Hangzhou Minsheng vs. Hainan HNA Infrastructure |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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