Correlation Between Ningbo Tip and PKU HealthCare
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By analyzing existing cross correlation between Ningbo Tip Rubber and PKU HealthCare Corp, you can compare the effects of market volatilities on Ningbo Tip 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 Ningbo Tip with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and PKU HealthCare.
Diversification Opportunities for Ningbo Tip and PKU HealthCare
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and PKU is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber 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 Ningbo Tip 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 Ningbo Tip Rubber 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 Ningbo Tip i.e., Ningbo Tip and PKU HealthCare go up and down completely randomly.
Pair Corralation between Ningbo Tip and PKU HealthCare
Assuming the 90 days trading horizon Ningbo Tip is expected to generate 5.82 times less return on investment than PKU HealthCare. In addition to that, Ningbo Tip is 1.16 times more volatile than PKU HealthCare Corp. It trades about 0.01 of its total potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.06 per unit of volatility. If you would invest 533.00 in PKU HealthCare Corp on September 3, 2024 and sell it today you would earn a total of 108.00 from holding PKU HealthCare Corp or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. PKU HealthCare Corp
Performance |
| Timeline |
| Ningbo Tip Rubber |
| PKU HealthCare Corp |
Ningbo Tip and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and PKU HealthCare
The main advantage of trading using opposite Ningbo Tip and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip 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.| Ningbo Tip vs. PetroChina Co Ltd | Ningbo Tip vs. China Mobile Limited | Ningbo Tip vs. Industrial and Commercial | Ningbo Tip vs. China Life Insurance |
| PKU HealthCare vs. Chengdu Kanghua Biological | PKU HealthCare vs. Beijing Wantai Biological | PKU HealthCare vs. Suzhou Novoprotein Scientific | PKU HealthCare vs. Aluminum Corp of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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