Correlation Between PKSHA TECHNOLOGY and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and CHINA TONTINE 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 PKSHA TECHNOLOGY and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and CHINA TONTINE WINES, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and CHINA TONTINE 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 PKSHA TECHNOLOGY with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and CHINA TONTINE.
Diversification Opportunities for PKSHA TECHNOLOGY and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PKSHA and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and CHINA TONTINE go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and CHINA TONTINE
If you would invest 1,800 in PKSHA TECHNOLOGY INC on September 14, 2024 and sell it today you would earn a total of 620.00 from holding PKSHA TECHNOLOGY INC or generate 34.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. CHINA TONTINE WINES
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| CHINA TONTINE WINES |
PKSHA TECHNOLOGY and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and CHINA TONTINE
The main advantage of trading using opposite PKSHA TECHNOLOGY and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| PKSHA TECHNOLOGY vs. Adyen NV | PKSHA TECHNOLOGY vs. Superior Plus Corp | PKSHA TECHNOLOGY vs. SIVERS SEMICONDUCTORS AB | PKSHA TECHNOLOGY vs. Norsk Hydro ASA |
| CHINA TONTINE vs. Chiba Bank | CHINA TONTINE vs. PKSHA TECHNOLOGY INC | CHINA TONTINE vs. TFS FINANCIAL | CHINA TONTINE vs. SMA Solar Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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