Correlation Between Peijia Medical and PEPTONIC MEDICAL
Can any of the company-specific risk be diversified away by investing in both Peijia Medical and PEPTONIC MEDICAL 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 Peijia Medical and PEPTONIC MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peijia Medical Limited and PEPTONIC MEDICAL, you can compare the effects of market volatilities on Peijia Medical and PEPTONIC MEDICAL 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 Peijia Medical with a short position of PEPTONIC MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and PEPTONIC MEDICAL.
Diversification Opportunities for Peijia Medical and PEPTONIC MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peijia and PEPTONIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and PEPTONIC MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPTONIC MEDICAL and Peijia Medical 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 Peijia Medical Limited are associated (or correlated) with PEPTONIC MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPTONIC MEDICAL has no effect on the direction of Peijia Medical i.e., Peijia Medical and PEPTONIC MEDICAL go up and down completely randomly.
Pair Corralation between Peijia Medical and PEPTONIC MEDICAL
If you would invest 0.02 in PEPTONIC MEDICAL on November 8, 2024 and sell it today you would earn a total of 0.00 from holding PEPTONIC MEDICAL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peijia Medical Limited vs. PEPTONIC MEDICAL
Performance |
| Timeline |
| Peijia Medical |
| PEPTONIC MEDICAL |
Peijia Medical and PEPTONIC MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and PEPTONIC MEDICAL
The main advantage of trading using opposite Peijia Medical and PEPTONIC MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical position performs unexpectedly, PEPTONIC MEDICAL 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 PEPTONIC MEDICAL will offset losses from the drop in PEPTONIC MEDICAL's long position.| Peijia Medical vs. ADDUS HOMECARE | Peijia Medical vs. Corporate Office Properties | Peijia Medical vs. PennantPark Investment | Peijia Medical vs. American Homes 4 |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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