Correlation Between Changjiang Publishing and PKU HealthCare
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By analyzing existing cross correlation between Changjiang Publishing Media and PKU HealthCare Corp, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and PKU HealthCare.
Diversification Opportunities for Changjiang Publishing and PKU HealthCare
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Changjiang and PKU is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media 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 Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and PKU HealthCare go up and down completely randomly.
Pair Corralation between Changjiang Publishing and PKU HealthCare
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 1.07 times more return on investment than PKU HealthCare. However, Changjiang Publishing is 1.07 times more volatile than PKU HealthCare Corp. It trades about 0.05 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about -0.01 per unit of risk. If you would invest 563.00 in Changjiang Publishing Media on November 19, 2024 and sell it today you would earn a total of 333.00 from holding Changjiang Publishing Media or generate 59.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. PKU HealthCare Corp
Performance |
| Timeline |
| Changjiang Publishing |
| PKU HealthCare Corp |
Changjiang Publishing and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and PKU HealthCare
The main advantage of trading using opposite Changjiang Publishing and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.The idea behind Changjiang Publishing Media 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.
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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