Correlation Between Tianjin Realty and PKU HealthCare

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Tianjin Realty and PKU HealthCare 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 Tianjin Realty and PKU HealthCare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Realty Development and PKU HealthCare Corp, you can compare the effects of market volatilities on Tianjin Realty and PKU HealthCare 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 Tianjin Realty with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Realty and PKU HealthCare.

Diversification Opportunities for Tianjin Realty and PKU HealthCare

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Tianjin and PKU is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Realty Development and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp and Tianjin Realty 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 Tianjin Realty Development are associated (or correlated) with PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of Tianjin Realty i.e., Tianjin Realty and PKU HealthCare go up and down completely randomly.

Pair Corralation between Tianjin Realty and PKU HealthCare

Assuming the 90 days trading horizon Tianjin Realty Development is expected to generate 1.51 times more return on investment than PKU HealthCare. However, Tianjin Realty is 1.51 times more volatile than PKU HealthCare Corp. It trades about 0.01 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.0 per unit of risk. If you would invest  248.00  in Tianjin Realty Development on August 25, 2024 and sell it today you would lose (20.00) from holding Tianjin Realty Development or give up 8.06% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Tianjin Realty Development  vs.  PKU HealthCare Corp

 Performance 
       Timeline  
Tianjin Realty Devel 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Tianjin Realty Development are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Tianjin Realty sustained solid returns over the last few months and may actually be approaching a breakup point.
PKU HealthCare Corp 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in PKU HealthCare Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, PKU HealthCare sustained solid returns over the last few months and may actually be approaching a breakup point.

Tianjin Realty and PKU HealthCare Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tianjin Realty and PKU HealthCare

The main advantage of trading using opposite Tianjin Realty and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Realty position performs unexpectedly, PKU HealthCare 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 PKU HealthCare will offset losses from the drop in PKU HealthCare's long position.
Tianjin Realty vs. Industrial and Commercial
Tianjin Realty vs. China Construction Bank
Tianjin Realty vs. Bank of China
Tianjin Realty vs. Agricultural Bank of
The idea behind Tianjin Realty Development and PKU HealthCare Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
PKU HealthCare vs. Industrial and Commercial
PKU HealthCare vs. Agricultural Bank of
PKU HealthCare vs. China Construction Bank
PKU HealthCare vs. Bank of China
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Technical Analysis
Check basic technical indicators and analysis based on most latest market data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY