Correlation Between Shanghai Phichem and PKU HealthCare
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By analyzing existing cross correlation between Shanghai Phichem Material and PKU HealthCare Corp, you can compare the effects of market volatilities on Shanghai Phichem 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 Shanghai Phichem with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and PKU HealthCare.
Diversification Opportunities for Shanghai Phichem and PKU HealthCare
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and PKU is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material 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 Shanghai Phichem 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 Shanghai Phichem Material 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 Shanghai Phichem i.e., Shanghai Phichem and PKU HealthCare go up and down completely randomly.
Pair Corralation between Shanghai Phichem and PKU HealthCare
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 0.6 times more return on investment than PKU HealthCare. However, Shanghai Phichem Material is 1.67 times less risky than PKU HealthCare. It trades about 0.02 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 1,576 in Shanghai Phichem Material on November 1, 2024 and sell it today you would earn a total of 9.00 from holding Shanghai Phichem Material or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. PKU HealthCare Corp
Performance |
| Timeline |
| Shanghai Phichem Material |
| PKU HealthCare Corp |
Shanghai Phichem and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and PKU HealthCare
The main advantage of trading using opposite Shanghai Phichem and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem 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.| Shanghai Phichem vs. Baoshan Iron Steel | Shanghai Phichem vs. Beijing Kaiwen Education | Shanghai Phichem vs. Elite Color Environmental | Shanghai Phichem vs. Qtone Education Group |
| PKU HealthCare vs. Jilin OLED Material | PKU HealthCare vs. Kingclean Electric Co | PKU HealthCare vs. Shanghai Phichem Material | PKU HealthCare vs. Vats Liquor Chain |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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