Correlation Between Peijia Medical and DXC Technology
Can any of the company-specific risk be diversified away by investing in both Peijia Medical and DXC Technology 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 DXC Technology 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 DXC Technology Co, you can compare the effects of market volatilities on Peijia Medical and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and DXC Technology.
Diversification Opportunities for Peijia Medical and DXC Technology
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peijia and DXC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Peijia Medical i.e., Peijia Medical and DXC Technology go up and down completely randomly.
Pair Corralation between Peijia Medical and DXC Technology
Assuming the 90 days horizon Peijia Medical Limited is expected to generate 1.81 times more return on investment than DXC Technology. However, Peijia Medical is 1.81 times more volatile than DXC Technology Co. It trades about 0.02 of its potential returns per unit of risk. DXC Technology Co is currently generating about -0.07 per unit of risk. If you would invest 44.00 in Peijia Medical Limited on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Peijia Medical Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peijia Medical Limited vs. DXC Technology Co
Performance |
| Timeline |
| Peijia Medical |
| DXC Technology |
Peijia Medical and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and DXC Technology
The main advantage of trading using opposite Peijia Medical and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| Peijia Medical vs. Lendlease Group | Peijia Medical vs. United Rentals | Peijia Medical vs. WILLIS LEASE FIN | Peijia Medical vs. Vishay Intertechnology |
| DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc |
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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