Correlation Between Peijia Medical and SPECTRAL MEDICAL
Can any of the company-specific risk be diversified away by investing in both Peijia Medical and SPECTRAL 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 SPECTRAL 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 SPECTRAL MEDICAL, you can compare the effects of market volatilities on Peijia Medical and SPECTRAL 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 SPECTRAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peijia Medical and SPECTRAL MEDICAL.
Diversification Opportunities for Peijia Medical and SPECTRAL MEDICAL
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Peijia and SPECTRAL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Peijia Medical Limited and SPECTRAL MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRAL 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 SPECTRAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRAL MEDICAL has no effect on the direction of Peijia Medical i.e., Peijia Medical and SPECTRAL MEDICAL go up and down completely randomly.
Pair Corralation between Peijia Medical and SPECTRAL MEDICAL
Assuming the 90 days horizon Peijia Medical Limited is expected to under-perform the SPECTRAL MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Peijia Medical Limited is 2.34 times less risky than SPECTRAL MEDICAL. The stock trades about -0.13 of its potential returns per unit of risk. The SPECTRAL MEDICAL is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 33.00 in SPECTRAL MEDICAL on November 2, 2024 and sell it today you would earn a total of 1.00 from holding SPECTRAL MEDICAL or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Peijia Medical Limited vs. SPECTRAL MEDICAL
Performance |
| Timeline |
| Peijia Medical |
| SPECTRAL MEDICAL |
Peijia Medical and SPECTRAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peijia Medical and SPECTRAL MEDICAL
The main advantage of trading using opposite Peijia Medical and SPECTRAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peijia Medical position performs unexpectedly, SPECTRAL 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 SPECTRAL MEDICAL will offset losses from the drop in SPECTRAL MEDICAL's long position.| Peijia Medical vs. Gaztransport Technigaz SA | Peijia Medical vs. Datadog | Peijia Medical vs. DATAGROUP SE | Peijia Medical vs. Gold Road Resources |
| SPECTRAL MEDICAL vs. RCI Hospitality Holdings | SPECTRAL MEDICAL vs. STMicroelectronics NV | SPECTRAL MEDICAL vs. KIMBALL ELECTRONICS | SPECTRAL MEDICAL vs. Universal Health Realty |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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