Correlation Between PKU HealthCare and Ming Yang
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By analyzing existing cross correlation between PKU HealthCare Corp and Ming Yang Smart, you can compare the effects of market volatilities on PKU HealthCare and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Ming Yang.
Diversification Opportunities for PKU HealthCare and Ming Yang
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKU and Ming is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Ming Yang go up and down completely randomly.
Pair Corralation between PKU HealthCare and Ming Yang
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 1.34 times more return on investment than Ming Yang. However, PKU HealthCare is 1.34 times more volatile than Ming Yang Smart. It trades about -0.02 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.14 per unit of risk. If you would invest 623.00 in PKU HealthCare Corp on October 26, 2024 and sell it today you would lose (39.00) from holding PKU HealthCare Corp or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Ming Yang Smart
Performance |
| Timeline |
| PKU HealthCare Corp |
| Ming Yang Smart |
PKU HealthCare and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Ming Yang
The main advantage of trading using opposite PKU HealthCare and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| PKU HealthCare vs. Ming Yang Smart | PKU HealthCare vs. 159681 | PKU HealthCare vs. 159005 | PKU HealthCare vs. Loctek Ergonomic Technology |
| Ming Yang vs. Zhonghang Electronic Measuring | Ming Yang vs. Sichuan Yahua Industrial | Ming Yang vs. Semiconductor Manufacturing Electronics | Ming Yang vs. Guangdong Ellington Electronics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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