Correlation Between Haitong Securities and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and PKSHA TECHNOLOGY at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Haitong Securities and PKSHA TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Haitong Securities and PKSHA TECHNOLOGY 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 Haitong Securities with a short position of PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and PKSHA TECHNOLOGY.
Diversification Opportunities for Haitong Securities and PKSHA TECHNOLOGY
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haitong and PKSHA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Haitong Securities i.e., Haitong Securities and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Haitong Securities and PKSHA TECHNOLOGY
Assuming the 90 days horizon Haitong Securities Co is expected to generate 0.83 times more return on investment than PKSHA TECHNOLOGY. However, Haitong Securities Co is 1.2 times less risky than PKSHA TECHNOLOGY. It trades about -0.19 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about -0.33 per unit of risk. If you would invest 82.00 in Haitong Securities Co on October 24, 2024 and sell it today you would lose (4.00) from holding Haitong Securities Co or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haitong Securities Co vs. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Haitong Securities |
| PKSHA TECHNOLOGY INC |
Haitong Securities and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and PKSHA TECHNOLOGY
The main advantage of trading using opposite Haitong Securities and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.| Haitong Securities vs. TELECOM ITALIA | Haitong Securities vs. SK TELECOM TDADR | Haitong Securities vs. Cairo Communication SpA | Haitong Securities vs. Caseys General Stores |
| PKSHA TECHNOLOGY vs. PENN NATL GAMING | PKSHA TECHNOLOGY vs. Autohome ADR | PKSHA TECHNOLOGY vs. Haier Smart Home | PKSHA TECHNOLOGY vs. AUTOHOME INC A |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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