Correlation Between Hunan Investment and Penyao Environmental
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By analyzing existing cross correlation between Hunan Investment Group and Penyao Environmental Protection, you can compare the effects of market volatilities on Hunan Investment and Penyao Environmental 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 Hunan Investment with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Penyao Environmental.
Diversification Opportunities for Hunan Investment and Penyao Environmental
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Penyao is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Hunan Investment i.e., Hunan Investment and Penyao Environmental go up and down completely randomly.
Pair Corralation between Hunan Investment and Penyao Environmental
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Penyao Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 1.38 times less risky than Penyao Environmental. The stock trades about -0.37 of its potential returns per unit of risk. The Penyao Environmental Protection is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Penyao Environmental Protection on October 12, 2024 and sell it today you would lose (81.00) from holding Penyao Environmental Protection or give up 13.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Hunan Investment |
| Penyao Environmental |
Hunan Investment and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Penyao Environmental
The main advantage of trading using opposite Hunan Investment and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Hunan Investment vs. Techshine Electronics Co | Hunan Investment vs. Leyard Optoelectronic | Hunan Investment vs. Shenzhen Clou Electronics | Hunan Investment vs. Songz Automobile Air |
| Penyao Environmental vs. Luyin Investment Group | Penyao Environmental vs. Hunan Investment Group | Penyao Environmental vs. Healthcare Co | Penyao Environmental vs. Zhongshan Public Utilities |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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