Correlation Between Wuhan Yangtze and PKU HealthCare
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By analyzing existing cross correlation between Wuhan Yangtze Communication and PKU HealthCare Corp, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and PKU HealthCare.
Diversification Opportunities for Wuhan Yangtze and PKU HealthCare
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and PKU is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and PKU HealthCare go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and PKU HealthCare
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the PKU HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Yangtze Communication is 1.51 times less risky than PKU HealthCare. The stock trades about -0.46 of its potential returns per unit of risk. The PKU HealthCare Corp is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 667.00 in PKU HealthCare Corp on October 12, 2024 and sell it today you would lose (56.00) from holding PKU HealthCare Corp or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. PKU HealthCare Corp
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| PKU HealthCare Corp |
Wuhan Yangtze and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and PKU HealthCare
The main advantage of trading using opposite Wuhan Yangtze and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Hefei Metalforming Mach | Wuhan Yangtze vs. Hubeiyichang Transportation Group | Wuhan Yangtze vs. Jiaozuo Wanfang Aluminum | Wuhan Yangtze vs. Western Metal Materials |
| PKU HealthCare vs. Zhengzhou Coal Mining | PKU HealthCare vs. Wuhan Yangtze Communication | PKU HealthCare vs. Ningbo Jintian Copper | PKU HealthCare vs. Tongyu Communication |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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