Correlation Between Peijia Medical and PULSION Medical
Can any of the company-specific risk be diversified away by investing in both Peijia Medical and PULSION 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 PULSION 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 PULSION Medical Systems, you can compare the effects of market volatilities on Peijia Medical and PULSION 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 PULSION Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and PULSION Medical.
Diversification Opportunities for Peijia Medical and PULSION Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peijia and PULSION is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and PULSION Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PULSION Medical Systems 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 PULSION Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PULSION Medical Systems has no effect on the direction of Peijia Medical i.e., Peijia Medical and PULSION Medical go up and down completely randomly.
Pair Corralation between Peijia Medical and PULSION Medical
Assuming the 90 days horizon Peijia Medical Limited is expected to under-perform the PULSION Medical. In addition to that, Peijia Medical is 2.06 times more volatile than PULSION Medical Systems. It trades about -0.02 of its total potential returns per unit of risk. PULSION Medical Systems is currently generating about 0.0 per unit of volatility. If you would invest 1,695 in PULSION Medical Systems on October 11, 2024 and sell it today you would lose (95.00) from holding PULSION Medical Systems or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.0% |
| Values | Daily Returns |
Peijia Medical Limited vs. PULSION Medical Systems
Performance |
| Timeline |
| Peijia Medical |
| PULSION Medical Systems |
Peijia Medical and PULSION Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and PULSION Medical
The main advantage of trading using opposite Peijia Medical and PULSION Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical position performs unexpectedly, PULSION 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 PULSION Medical will offset losses from the drop in PULSION Medical's long position.| Peijia Medical vs. Hitachi Construction Machinery | Peijia Medical vs. AGRICULTBK HADR25 YC | Peijia Medical vs. ecotel communication ag | Peijia Medical vs. North American Construction |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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