Correlation Between PKU HealthCare and Western Mining
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By analyzing existing cross correlation between PKU HealthCare Corp and Western Mining Co, you can compare the effects of market volatilities on PKU HealthCare and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Western Mining.
Diversification Opportunities for PKU HealthCare and Western Mining
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PKU and Western is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Western Mining go up and down completely randomly.
Pair Corralation between PKU HealthCare and Western Mining
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Western Mining. In addition to that, PKU HealthCare is 1.17 times more volatile than Western Mining Co. It trades about -0.01 of its total potential returns per unit of risk. Western Mining Co is currently generating about 0.06 per unit of volatility. If you would invest 1,285 in Western Mining Co on October 16, 2024 and sell it today you would earn a total of 435.00 from holding Western Mining Co or generate 33.85% 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. Western Mining Co
Performance |
| Timeline |
| PKU HealthCare Corp |
| Western Mining |
PKU HealthCare and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Western Mining
The main advantage of trading using opposite PKU HealthCare and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| PKU HealthCare vs. Guangxi Wuzhou Communications | PKU HealthCare vs. Jilin Jlu Communication | PKU HealthCare vs. Runjian Communication Co | PKU HealthCare vs. Wuhan Yangtze Communication |
| Western Mining vs. Dosilicon Co | Western Mining vs. Longxing Chemical Stock | Western Mining vs. Mengtian Home Group | Western Mining vs. Shandong Rike Chemical |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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