Correlation Between Peijia Medical and MOLSON RS
Can any of the company-specific risk be diversified away by investing in both Peijia Medical and MOLSON RS 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 MOLSON RS 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 MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Peijia Medical and MOLSON RS 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 MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and MOLSON RS.
Diversification Opportunities for Peijia Medical and MOLSON RS
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peijia and MOLSON is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON RS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of Peijia Medical i.e., Peijia Medical and MOLSON RS go up and down completely randomly.
Pair Corralation between Peijia Medical and MOLSON RS
Assuming the 90 days horizon Peijia Medical Limited is expected to under-perform the MOLSON RS. In addition to that, Peijia Medical is 1.5 times more volatile than MOLSON RS BEVERAGE. It trades about -0.03 of its total potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about -0.01 per unit of volatility. If you would invest 7,157 in MOLSON RS BEVERAGE on October 31, 2024 and sell it today you would lose (1,757) from holding MOLSON RS BEVERAGE or give up 24.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.8% |
| Values | Daily Returns |
Peijia Medical Limited vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Peijia Medical |
| MOLSON RS BEVERAGE |
Peijia Medical and MOLSON RS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and MOLSON RS
The main advantage of trading using opposite Peijia Medical and MOLSON RS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical position performs unexpectedly, MOLSON RS 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 MOLSON RS will offset losses from the drop in MOLSON RS's long position.| Peijia Medical vs. Strategic Education | Peijia Medical vs. MTY Food Group | Peijia Medical vs. DeVry Education Group | Peijia Medical vs. Tyson Foods |
| MOLSON RS vs. GALENA MINING LTD | MOLSON RS vs. United Utilities Group | MOLSON RS vs. ALBIS LEASING AG | MOLSON RS vs. NORTHEAST UTILITIES |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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