Correlation Between Dazhong Transportation and PKU HealthCare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dazhong Transportation Group and PKU HealthCare Corp, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and PKU HealthCare.
Diversification Opportunities for Dazhong Transportation and PKU HealthCare
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dazhong and PKU is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and PKU HealthCare go up and down completely randomly.
Pair Corralation between Dazhong Transportation and PKU HealthCare
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 0.78 times more return on investment than PKU HealthCare. However, Dazhong Transportation Group is 1.28 times less risky than PKU HealthCare. It trades about 0.11 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.06 per unit of risk. If you would invest 18.00 in Dazhong Transportation Group on October 18, 2024 and sell it today you would earn a total of 4.00 from holding Dazhong Transportation Group or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. PKU HealthCare Corp
Performance |
| Timeline |
| Dazhong Transportation |
| PKU HealthCare Corp |
Dazhong Transportation and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and PKU HealthCare
The main advantage of trading using opposite Dazhong Transportation and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.The idea behind Dazhong Transportation Group and PKU HealthCare Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| PKU HealthCare vs. Dazhong Transportation Group | PKU HealthCare vs. Aba Chemicals Corp | PKU HealthCare vs. Agricultural Bank of | PKU HealthCare vs. Postal Savings Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world |