Correlation Between PKU HealthCare and Shenzhen Aisidi

Can any of the company-specific risk be diversified away by investing in both PKU HealthCare and Shenzhen Aisidi 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 PKU HealthCare and Shenzhen Aisidi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PKU HealthCare Corp and Shenzhen Aisidi Co, you can compare the effects of market volatilities on PKU HealthCare and Shenzhen Aisidi 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 PKU HealthCare with a short position of Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Shenzhen Aisidi.

Diversification Opportunities for PKU HealthCare and Shenzhen Aisidi

0.0

Correlation Coefficient

PKU HealthCare  Shenzhen Aisidi

Pay attention - limited upside

The 3 months correlation between PKU and Shenzhen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi and PKU HealthCare 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 PKU HealthCare Corp are associated (or correlated) with Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Shenzhen Aisidi go up and down completely randomly.

Pair Corralation between PKU HealthCare and Shenzhen Aisidi

If you would invest (100.00) in Shenzhen Aisidi Co on October 10, 2024 and sell it today you would earn a total of  100.00  from holding Shenzhen Aisidi Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PKU HealthCare Corp  vs.  Shenzhen Aisidi Co

PKU HealthCare Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PKU HealthCare Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, PKU HealthCare may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Shenzhen Aisidi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shenzhen Aisidi Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shenzhen Aisidi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PKU HealthCare and Shenzhen Aisidi

The main advantage of trading using opposite PKU HealthCare and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.

The idea behind PKU HealthCare Corp and Shenzhen Aisidi Co 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.