Correlation Between Chengdu Kanghua and PKU HealthCare
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By analyzing existing cross correlation between Chengdu Kanghua Biological and PKU HealthCare Corp, you can compare the effects of market volatilities on Chengdu Kanghua 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 Chengdu Kanghua with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and PKU HealthCare.
Diversification Opportunities for Chengdu Kanghua and PKU HealthCare
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and PKU is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological 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 Chengdu Kanghua 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 Chengdu Kanghua Biological 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 Chengdu Kanghua i.e., Chengdu Kanghua and PKU HealthCare go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and PKU HealthCare
Assuming the 90 days trading horizon Chengdu Kanghua is expected to generate 2.49 times less return on investment than PKU HealthCare. In addition to that, Chengdu Kanghua is 1.56 times more volatile than PKU HealthCare Corp. It trades about 0.02 of its total potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.08 per unit of volatility. If you would invest 526.00 in PKU HealthCare Corp on September 3, 2024 and sell it today you would earn a total of 115.00 from holding PKU HealthCare Corp or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. PKU HealthCare Corp
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| PKU HealthCare Corp |
Chengdu Kanghua and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and PKU HealthCare
The main advantage of trading using opposite Chengdu Kanghua and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua 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.| Chengdu Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum Group |
| PKU HealthCare vs. Chengdu Kanghua Biological | PKU HealthCare vs. Beijing Wantai Biological | PKU HealthCare vs. Suzhou Novoprotein Scientific | PKU HealthCare vs. Aluminum Corp of |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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