Correlation Between Sobute New and PKU HealthCare
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By analyzing existing cross correlation between Sobute New Materials and PKU HealthCare Corp, you can compare the effects of market volatilities on Sobute New 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 Sobute New with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sobute New and PKU HealthCare.
Diversification Opportunities for Sobute New and PKU HealthCare
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sobute and PKU is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sobute New Materials 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 Sobute New 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 Sobute New Materials 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 Sobute New i.e., Sobute New and PKU HealthCare go up and down completely randomly.
Pair Corralation between Sobute New and PKU HealthCare
Assuming the 90 days trading horizon Sobute New Materials is expected to generate 0.34 times more return on investment than PKU HealthCare. However, Sobute New Materials is 2.9 times less risky than PKU HealthCare. It trades about -0.16 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about -0.22 per unit of risk. If you would invest 770.00 in Sobute New Materials on October 22, 2024 and sell it today you would lose (38.00) from holding Sobute New Materials or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sobute New Materials vs. PKU HealthCare Corp
Performance |
| Timeline |
| Sobute New Materials |
| PKU HealthCare Corp |
Sobute New and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sobute New and PKU HealthCare
The main advantage of trading using opposite Sobute New and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sobute New 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.| Sobute New vs. PKU HealthCare Corp | Sobute New vs. Hangzhou Minsheng Healthcare | Sobute New vs. Sanbo Hospital Management | Sobute New vs. Mingchen Health Co |
| PKU HealthCare vs. Hainan Mining Co | PKU HealthCare vs. Shanghai Newtouch Software | PKU HealthCare vs. Hangzhou Pinming Software | PKU HealthCare vs. China National Software |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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