Correlation Between PPHE HOTEL and ZhongAn Online
Can any of the company-specific risk be diversified away by investing in both PPHE HOTEL and ZhongAn Online at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PPHE HOTEL and ZhongAn Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPHE HOTEL GROUP and ZhongAn Online P, you can compare the effects of market volatilities on PPHE HOTEL and ZhongAn Online 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 PPHE HOTEL with a short position of ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE HOTEL and ZhongAn Online.
Diversification Opportunities for PPHE HOTEL and ZhongAn Online
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PPHE and ZhongAn is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PPHE HOTEL GROUP and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P and PPHE HOTEL 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 PPHE HOTEL GROUP are associated (or correlated) with ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of PPHE HOTEL i.e., PPHE HOTEL and ZhongAn Online go up and down completely randomly.
Pair Corralation between PPHE HOTEL and ZhongAn Online
Assuming the 90 days trading horizon PPHE HOTEL GROUP is expected to generate 0.71 times more return on investment than ZhongAn Online. However, PPHE HOTEL GROUP is 1.41 times less risky than ZhongAn Online. It trades about 0.07 of its potential returns per unit of risk. ZhongAn Online P is currently generating about -0.09 per unit of risk. If you would invest 1,480 in PPHE HOTEL GROUP on November 7, 2024 and sell it today you would earn a total of 100.00 from holding PPHE HOTEL GROUP or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PPHE HOTEL GROUP vs. ZhongAn Online P
Performance |
| Timeline |
| PPHE HOTEL GROUP |
| ZhongAn Online P |
PPHE HOTEL and ZhongAn Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE HOTEL and ZhongAn Online
The main advantage of trading using opposite PPHE HOTEL and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE HOTEL position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.| PPHE HOTEL vs. ATRESMEDIA | PPHE HOTEL vs. GigaMedia | PPHE HOTEL vs. ANTA SPORTS PRODUCT | PPHE HOTEL vs. Universal Entertainment |
| ZhongAn Online vs. CLOVER HEALTH INV | ZhongAn Online vs. PURE FOODS TASMANIA | ZhongAn Online vs. PLANT VEDA FOODS | ZhongAn Online vs. Planet Fitness |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |