Correlation Between Healthcare and Pengxin International
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By analyzing existing cross correlation between Healthcare Co and Pengxin International Mining, you can compare the effects of market volatilities on Healthcare and Pengxin International 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 Healthcare with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Pengxin International.
Diversification Opportunities for Healthcare and Pengxin International
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Healthcare and Pengxin is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Healthcare 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 Healthcare Co are associated (or correlated) with Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Healthcare i.e., Healthcare and Pengxin International go up and down completely randomly.
Pair Corralation between Healthcare and Pengxin International
Assuming the 90 days trading horizon Healthcare Co is expected to generate 0.61 times more return on investment than Pengxin International. However, Healthcare Co is 1.64 times less risky than Pengxin International. It trades about -0.09 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.19 per unit of risk. If you would invest 716.00 in Healthcare Co on October 28, 2024 and sell it today you would lose (31.00) from holding Healthcare Co or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Pengxin International Mining
Performance |
| Timeline |
| Healthcare |
| Pengxin International |
Healthcare and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Pengxin International
The main advantage of trading using opposite Healthcare and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Healthcare vs. Dezhan HealthCare Co | Healthcare vs. Heren Health Co | Healthcare vs. Winner Medical Co | Healthcare vs. Mingchen Health Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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