Correlation Between Weihai Honglin and PKU HealthCare
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By analyzing existing cross correlation between Weihai Honglin Electronic and PKU HealthCare Corp, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and PKU HealthCare.
Diversification Opportunities for Weihai Honglin and PKU HealthCare
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weihai and PKU is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and PKU HealthCare go up and down completely randomly.
Pair Corralation between Weihai Honglin and PKU HealthCare
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.1 times more return on investment than PKU HealthCare. However, Weihai Honglin is 1.1 times more volatile than PKU HealthCare Corp. It trades about 0.08 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.07 per unit of risk. If you would invest 1,006 in Weihai Honglin Electronic on November 3, 2024 and sell it today you would earn a total of 601.00 from holding Weihai Honglin Electronic or generate 59.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. PKU HealthCare Corp
Performance |
| Timeline |
| Weihai Honglin Electronic |
| PKU HealthCare Corp |
Weihai Honglin and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and PKU HealthCare
The main advantage of trading using opposite Weihai Honglin and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Winner Medical Co | Weihai Honglin vs. East Money Information | Weihai Honglin vs. Juneyao Airlines | Weihai Honglin vs. Shandong Longquan Pipeline |
| PKU HealthCare vs. Capitalonline Data Service | PKU HealthCare vs. Emdoor Information Co | PKU HealthCare vs. Bus Online Co | PKU HealthCare vs. Jiangsu GDK Biotechnology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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