Correlation Between SAFEROADS HLDGS and Peijia Medical
Can any of the company-specific risk be diversified away by investing in both SAFEROADS HLDGS and Peijia Medical 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 SAFEROADS HLDGS and Peijia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAFEROADS HLDGS and Peijia Medical Limited, you can compare the effects of market volatilities on SAFEROADS HLDGS and Peijia Medical 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 SAFEROADS HLDGS with a short position of Peijia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAFEROADS HLDGS and Peijia Medical.
Diversification Opportunities for SAFEROADS HLDGS and Peijia Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAFEROADS and Peijia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAFEROADS HLDGS and Peijia Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peijia Medical and SAFEROADS HLDGS 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 SAFEROADS HLDGS are associated (or correlated) with Peijia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peijia Medical has no effect on the direction of SAFEROADS HLDGS i.e., SAFEROADS HLDGS and Peijia Medical go up and down completely randomly.
Pair Corralation between SAFEROADS HLDGS and Peijia Medical
If you would invest 13.00 in SAFEROADS HLDGS on October 12, 2024 and sell it today you would earn a total of 0.00 from holding SAFEROADS HLDGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAFEROADS HLDGS vs. Peijia Medical Limited
Performance |
| Timeline |
| SAFEROADS HLDGS |
| Peijia Medical |
SAFEROADS HLDGS and Peijia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAFEROADS HLDGS and Peijia Medical
The main advantage of trading using opposite SAFEROADS HLDGS and Peijia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAFEROADS HLDGS position performs unexpectedly, Peijia Medical 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 Peijia Medical will offset losses from the drop in Peijia Medical's long position.| SAFEROADS HLDGS vs. Peijia Medical Limited | SAFEROADS HLDGS vs. Zurich Insurance Group | SAFEROADS HLDGS vs. Direct Line Insurance | SAFEROADS HLDGS vs. Insurance Australia Group |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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