Correlation Between PKU HealthCare and Chinese Universe
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By analyzing existing cross correlation between PKU HealthCare Corp and Chinese Universe Publishing, you can compare the effects of market volatilities on PKU HealthCare and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Chinese Universe.
Diversification Opportunities for PKU HealthCare and Chinese Universe
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between PKU and Chinese is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Chinese Universe go up and down completely randomly.
Pair Corralation between PKU HealthCare and Chinese Universe
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 1.06 times more return on investment than Chinese Universe. However, PKU HealthCare is 1.06 times more volatile than Chinese Universe Publishing. It trades about 0.02 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.3 per unit of risk. If you would invest 608.00 in PKU HealthCare Corp on August 25, 2024 and sell it today you would earn a total of 3.00 from holding PKU HealthCare Corp or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Chinese Universe Publishing
Performance |
| Timeline |
| PKU HealthCare Corp |
| Chinese Universe Pub |
PKU HealthCare and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Chinese Universe
The main advantage of trading using opposite PKU HealthCare and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| PKU HealthCare vs. Ningbo Jianan Electronics | PKU HealthCare vs. China World Trade | PKU HealthCare vs. Jiangyin Jianghua Microelectronics | PKU HealthCare vs. Keda Clean Energy |
| Chinese Universe vs. Xizi Clean Energy | Chinese Universe vs. Jiangsu Financial Leasing | Chinese Universe vs. Kingclean Electric Co | Chinese Universe vs. Panda Financial Holding |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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