Correlation Between Jiangyin Jianghua and PKU HealthCare
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and PKU HealthCare Corp, you can compare the effects of market volatilities on Jiangyin Jianghua 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 Jiangyin Jianghua with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and PKU HealthCare.
Diversification Opportunities for Jiangyin Jianghua and PKU HealthCare
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangyin and PKU is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro 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 Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics 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 Jiangyin Jianghua i.e., Jiangyin Jianghua and PKU HealthCare go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and PKU HealthCare
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.78 times more return on investment than PKU HealthCare. However, Jiangyin Jianghua is 1.78 times more volatile than PKU HealthCare Corp. It trades about 0.26 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about -0.08 per unit of risk. If you would invest 1,561 in Jiangyin Jianghua Microelectronics on August 29, 2024 and sell it today you would earn a total of 388.00 from holding Jiangyin Jianghua Microelectronics or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. PKU HealthCare Corp
Performance |
| Timeline |
| Jiangyin Jianghua |
| PKU HealthCare Corp |
Jiangyin Jianghua and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and PKU HealthCare
The main advantage of trading using opposite Jiangyin Jianghua and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua 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.| Jiangyin Jianghua vs. Ningbo Tip Rubber | Jiangyin Jianghua vs. Zhongtong Guomai Communication | Jiangyin Jianghua vs. Xinke Material | Jiangyin Jianghua vs. Malion New Materials |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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