Correlation Between PKU HealthCare and Jinhui Liquor
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By analyzing existing cross correlation between PKU HealthCare Corp and Jinhui Liquor Co, you can compare the effects of market volatilities on PKU HealthCare and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKU HealthCare and Jinhui Liquor.
Diversification Opportunities for PKU HealthCare and Jinhui Liquor
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKU and Jinhui is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding PKU HealthCare Corp and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of PKU HealthCare i.e., PKU HealthCare and Jinhui Liquor go up and down completely randomly.
Pair Corralation between PKU HealthCare and Jinhui Liquor
Assuming the 90 days trading horizon PKU HealthCare Corp is expected to generate 1.66 times more return on investment than Jinhui Liquor. However, PKU HealthCare is 1.66 times more volatile than Jinhui Liquor Co. It trades about 0.28 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.06 per unit of risk. If you would invest 623.00 in PKU HealthCare Corp on September 26, 2024 and sell it today you would earn a total of 121.00 from holding PKU HealthCare Corp or generate 19.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
PKU HealthCare Corp vs. Jinhui Liquor Co
Performance |
Timeline |
PKU HealthCare Corp |
Jinhui Liquor |
PKU HealthCare and Jinhui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PKU HealthCare and Jinhui Liquor
The main advantage of trading using opposite PKU HealthCare and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKU HealthCare position performs unexpectedly, Jinhui Liquor 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 Liquor will offset losses from the drop in Jinhui Liquor's long position.PKU HealthCare vs. Agricultural Bank of | PKU HealthCare vs. Industrial and Commercial | PKU HealthCare vs. Bank of China | PKU HealthCare vs. China Construction Bank |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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