Correlation Between PKU HealthCare and Shanghai CEO

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PKU HealthCare and Shanghai CEO at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PKU HealthCare and Shanghai CEO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKU HealthCare Corp and Shanghai CEO Environmental, you can compare the effects of market volatilities on PKU HealthCare and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Shanghai CEO.

Diversification Opportunities for PKU HealthCare and Shanghai CEO

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between PKU and Shanghai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Shanghai CEO go up and down completely randomly.

Pair Corralation between PKU HealthCare and Shanghai CEO

Assuming the 90 days trading horizon PKU HealthCare Corp is expected to under-perform the Shanghai CEO. But the stock apears to be less risky and, when comparing its historical volatility, PKU HealthCare Corp is 19.29 times less risky than Shanghai CEO. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai CEO Environmental is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,287  in Shanghai CEO Environmental on October 13, 2024 and sell it today you would lose (1,491) from holding Shanghai CEO Environmental or give up 65.19% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

PKU HealthCare Corp  vs.  Shanghai CEO Environmental

 Performance 
       Timeline  
PKU HealthCare Corp 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in PKU HealthCare Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, PKU HealthCare is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Shanghai CEO Environ 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shanghai CEO Environmental has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

PKU HealthCare and Shanghai CEO Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PKU HealthCare and Shanghai CEO

The main advantage of trading using opposite PKU HealthCare and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.
PKU HealthCare vs. Kuang Chi Technologies
PKU HealthCare vs. Cabio Biotech Wuhan
PKU HealthCare vs. Sharetronic Data Technology
PKU HealthCare vs. Jinhe Biotechnology Co
The idea behind PKU HealthCare Corp and Shanghai CEO Environmental pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Shanghai CEO vs. Beijing Mainstreets Investment
Shanghai CEO vs. Tsingtao Brewery Co
Shanghai CEO vs. PKU HealthCare Corp
Shanghai CEO vs. China Asset Management
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Transaction History
View history of all your transactions and understand their impact on performance
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY