Correlation Between PKU HealthCare and Sobute New
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By analyzing existing cross correlation between PKU HealthCare Corp and Sobute New Materials, you can compare the effects of market volatilities on PKU HealthCare and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Sobute New.
Diversification Opportunities for PKU HealthCare and Sobute New
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKU and Sobute is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Sobute New go up and down completely randomly.
Pair Corralation between PKU HealthCare and Sobute New
Assuming the 90 days trading horizon PKU HealthCare is expected to generate 1.36 times less return on investment than Sobute New. In addition to that, PKU HealthCare is 1.2 times more volatile than Sobute New Materials. It trades about 0.04 of its total potential returns per unit of risk. Sobute New Materials is currently generating about 0.06 per unit of volatility. If you would invest 641.00 in Sobute New Materials on November 3, 2024 and sell it today you would earn a total of 102.00 from holding Sobute New Materials or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKU HealthCare Corp vs. Sobute New Materials
Performance |
| Timeline |
| PKU HealthCare Corp |
| Sobute New Materials |
PKU HealthCare and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKU HealthCare and Sobute New
The main advantage of trading using opposite PKU HealthCare and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| PKU HealthCare vs. Capitalonline Data Service | PKU HealthCare vs. Emdoor Information Co | PKU HealthCare vs. Bus Online Co | PKU HealthCare vs. Jiangsu GDK Biotechnology |
| Sobute New vs. HUAQIN TECHNOLOGY LTD | Sobute New vs. Agricultural Bank of | Sobute New vs. China Everbright Bank | Sobute New vs. GRG Banking Equipment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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