Correlation Between PKSHA TECHNOLOGY and JINHUI SHIPPING
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and JINHUI SHIPPING 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 JINHUI SHIPPING 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 JINHUI SHIPPING, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and JINHUI SHIPPING 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 JINHUI SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and JINHUI SHIPPING.
Diversification Opportunities for PKSHA TECHNOLOGY and JINHUI SHIPPING
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PKSHA and JINHUI is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and JINHUI SHIPPING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINHUI SHIPPING 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 JINHUI SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINHUI SHIPPING has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and JINHUI SHIPPING go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and JINHUI SHIPPING
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.69 times more return on investment than JINHUI SHIPPING. However, PKSHA TECHNOLOGY is 1.69 times more volatile than JINHUI SHIPPING. It trades about 0.17 of its potential returns per unit of risk. JINHUI SHIPPING is currently generating about 0.01 per unit of risk. If you would invest 1,930 in PKSHA TECHNOLOGY INC on September 12, 2024 and sell it today you would earn a total of 730.00 from holding PKSHA TECHNOLOGY INC or generate 37.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. JINHUI SHIPPING
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| JINHUI SHIPPING |
PKSHA TECHNOLOGY and JINHUI SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and JINHUI SHIPPING
The main advantage of trading using opposite PKSHA TECHNOLOGY and JINHUI SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, JINHUI SHIPPING 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 JINHUI SHIPPING will offset losses from the drop in JINHUI SHIPPING'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 |
| JINHUI SHIPPING vs. NIPPON STEEL SPADR | JINHUI SHIPPING vs. LEGACY IRON ORE | JINHUI SHIPPING vs. Digilife Technologies Limited | JINHUI SHIPPING vs. PKSHA TECHNOLOGY INC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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