Correlation Between PKU HealthCare and China Eastern
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By analyzing existing cross correlation between PKU HealthCare Corp and China Eastern Airlines, you can compare the effects of market volatilities on PKU HealthCare and China Eastern 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 Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and China Eastern.
Diversification Opportunities for PKU HealthCare and China Eastern
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PKU and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and China Eastern go up and down completely randomly.
Pair Corralation between PKU HealthCare and China Eastern
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 1.48 times more return on investment than China Eastern. However, PKU HealthCare is 1.48 times more volatile than China Eastern Airlines. It trades about -0.01 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.03 per unit of risk. If you would invest 789.00 in PKU HealthCare Corp on September 13, 2024 and sell it today you would lose (122.00) from holding PKU HealthCare Corp or give up 15.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. China Eastern Airlines
Performance |
| Timeline |
| PKU HealthCare Corp |
| China Eastern Airlines |
PKU HealthCare and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and China Eastern
The main advantage of trading using opposite PKU HealthCare and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| PKU HealthCare vs. BeiGene | PKU HealthCare vs. Kweichow Moutai Co | PKU HealthCare vs. Beijing Roborock Technology | PKU HealthCare vs. G bits Network Technology |
| China Eastern vs. SUNSEA Telecommunications Co | China Eastern vs. Soyea Technology Co | China Eastern vs. TianJin 712 Communication | China Eastern vs. Guangdong Shenglu Telecommunication |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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