Correlation Between Jiangsu Xinning and PKU HealthCare
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By analyzing existing cross correlation between Jiangsu Xinning Modern and PKU HealthCare Corp, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and PKU HealthCare.
Diversification Opportunities for Jiangsu Xinning and PKU HealthCare
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and PKU is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern 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 Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and PKU HealthCare go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and PKU HealthCare
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.56 times more return on investment than PKU HealthCare. However, Jiangsu Xinning is 1.56 times more volatile than PKU HealthCare Corp. It trades about 0.23 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.02 per unit of risk. If you would invest 307.00 in Jiangsu Xinning Modern on August 25, 2024 and sell it today you would earn a total of 66.00 from holding Jiangsu Xinning Modern or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. PKU HealthCare Corp
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| PKU HealthCare Corp |
Jiangsu Xinning and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and PKU HealthCare
The main advantage of trading using opposite Jiangsu Xinning and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. Sportsoul Co Ltd | Jiangsu Xinning vs. Chengdu Spaceon Electronics | Jiangsu Xinning vs. Shandong Longquan Pipeline | Jiangsu Xinning vs. Shanghai CEO Environmental |
| PKU HealthCare vs. Industrial and Commercial | PKU HealthCare vs. Agricultural Bank of | PKU HealthCare vs. China Construction Bank | PKU HealthCare vs. Bank of China |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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