Correlation Between Peijia Medical and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both Peijia Medical and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on Peijia Medical and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and Maple Leaf.
Diversification Opportunities for Peijia Medical and Maple Leaf
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peijia and Maple is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Peijia Medical i.e., Peijia Medical and Maple Leaf go up and down completely randomly.
Pair Corralation between Peijia Medical and Maple Leaf
Assuming the 90 days horizon Peijia Medical Limited is expected to under-perform the Maple Leaf. In addition to that, Peijia Medical is 2.22 times more volatile than Maple Leaf Foods. It trades about -0.02 of its total potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.01 per unit of volatility. If you would invest 1,402 in Maple Leaf Foods on November 1, 2024 and sell it today you would earn a total of 28.00 from holding Maple Leaf Foods or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.71% |
| Values | Daily Returns |
Peijia Medical Limited vs. Maple Leaf Foods
Performance |
| Timeline |
| Peijia Medical |
| Maple Leaf Foods |
Peijia Medical and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and Maple Leaf
The main advantage of trading using opposite Peijia Medical and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| Peijia Medical vs. Molina Healthcare | Peijia Medical vs. PURETECH HEALTH PLC | Peijia Medical vs. PLAYWAY SA ZY 10 | Peijia Medical vs. CLOVER HEALTH INV |
| Maple Leaf vs. Diamyd Medical AB | Maple Leaf vs. Peijia Medical Limited | Maple Leaf vs. IMAGIN MEDICAL INC | Maple Leaf vs. CREO MEDICAL GRP |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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