Correlation Between Piotech and HOB Biotech
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By analyzing existing cross correlation between Piotech Inc A and HOB Biotech Group, you can compare the effects of market volatilities on Piotech and HOB Biotech 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 Piotech with a short position of HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and HOB Biotech.
Diversification Opportunities for Piotech and HOB Biotech
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Piotech and HOB is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group and Piotech 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 Piotech Inc A are associated (or correlated) with HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of Piotech i.e., Piotech and HOB Biotech go up and down completely randomly.
Pair Corralation between Piotech and HOB Biotech
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the HOB Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.27 times less risky than HOB Biotech. The stock trades about -0.19 of its potential returns per unit of risk. The HOB Biotech Group is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 9,731 in HOB Biotech Group on October 22, 2024 and sell it today you would lose (548.00) from holding HOB Biotech Group or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Piotech Inc A vs. HOB Biotech Group
Performance |
| Timeline |
| Piotech Inc A |
| HOB Biotech Group |
Piotech and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and HOB Biotech
The main advantage of trading using opposite Piotech and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.| Piotech vs. Hainan Mining Co | Piotech vs. Shenyang Huitian Thermal | Piotech vs. Tianjin Ruixin Technology | Piotech vs. Pengxin International Mining |
| HOB Biotech vs. New Hope Dairy | HOB Biotech vs. Zhongjing Food Co | HOB Biotech vs. Guangdong Wens Foodstuff | HOB Biotech vs. Shantou Wanshun Package |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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