Correlation Between PKU HealthCare and China Petroleum
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By analyzing existing cross correlation between PKU HealthCare Corp and China Petroleum Chemical, you can compare the effects of market volatilities on PKU HealthCare and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and China Petroleum.
Diversification Opportunities for PKU HealthCare and China Petroleum
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKU and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and China Petroleum go up and down completely randomly.
Pair Corralation between PKU HealthCare and China Petroleum
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 3.42 times more return on investment than China Petroleum. However, PKU HealthCare is 3.42 times more volatile than China Petroleum Chemical. It trades about -0.02 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.47 per unit of risk. If you would invest 600.00 in PKU HealthCare Corp on November 1, 2024 and sell it today you would lose (13.00) from holding PKU HealthCare Corp or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. China Petroleum Chemical
Performance |
| Timeline |
| PKU HealthCare Corp |
| China Petroleum Chemical |
PKU HealthCare and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and China Petroleum
The main advantage of trading using opposite PKU HealthCare and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| PKU HealthCare vs. Jilin OLED Material | PKU HealthCare vs. Kingclean Electric Co | PKU HealthCare vs. Shanghai Phichem Material | PKU HealthCare vs. Vats Liquor Chain |
| China Petroleum vs. Sichuan Fulin Transportation | China Petroleum vs. PKU HealthCare Corp | China Petroleum vs. Lander Sports Development | China Petroleum vs. Hangzhou Minsheng Healthcare |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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