Correlation Between Tongyu Communication and PKU HealthCare
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By analyzing existing cross correlation between Tongyu Communication and PKU HealthCare Corp, you can compare the effects of market volatilities on Tongyu Communication and PKU HealthCare 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 Tongyu Communication with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and PKU HealthCare.
Diversification Opportunities for Tongyu Communication and PKU HealthCare
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and PKU is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp and Tongyu Communication 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 Tongyu Communication are associated (or correlated) with PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and PKU HealthCare go up and down completely randomly.
Pair Corralation between Tongyu Communication and PKU HealthCare
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the PKU HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Tongyu Communication is 1.59 times less risky than PKU HealthCare. The stock trades about -0.19 of its potential returns per unit of risk. The PKU HealthCare Corp is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 667.00 in PKU HealthCare Corp on October 12, 2024 and sell it today you would lose (56.00) from holding PKU HealthCare Corp or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. PKU HealthCare Corp
Performance |
| Timeline |
| Tongyu Communication |
| PKU HealthCare Corp |
Tongyu Communication and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and PKU HealthCare
The main advantage of trading using opposite Tongyu Communication and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, PKU HealthCare 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 PKU HealthCare will offset losses from the drop in PKU HealthCare's long position.| Tongyu Communication vs. Beijing Shunxin Agriculture | Tongyu Communication vs. Shanghai Jinfeng Wine | Tongyu Communication vs. Tonghua Grape Wine | Tongyu Communication vs. Citic Guoan Wine |
| PKU HealthCare vs. Zhengzhou Coal Mining | PKU HealthCare vs. Wuhan Yangtze Communication | PKU HealthCare vs. Ningbo Jintian Copper | PKU HealthCare vs. Tongyu Communication |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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