Correlation Between Jizhong Energy and Penghua Shenzhen
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By analyzing existing cross correlation between Jizhong Energy Resources and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Jizhong Energy and Penghua Shenzhen 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 Jizhong Energy with a short position of Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jizhong Energy and Penghua Shenzhen.
Diversification Opportunities for Jizhong Energy and Penghua Shenzhen
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jizhong and Penghua is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jizhong Energy Resources and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy and Jizhong Energy 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 Jizhong Energy Resources are associated (or correlated) with Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Jizhong Energy i.e., Jizhong Energy and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Jizhong Energy and Penghua Shenzhen
Assuming the 90 days trading horizon Jizhong Energy Resources is expected to under-perform the Penghua Shenzhen. In addition to that, Jizhong Energy is 2.19 times more volatile than Penghua Shenzhen Energy. It trades about -0.15 of its total potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about -0.08 per unit of volatility. If you would invest 633.00 in Penghua Shenzhen Energy on November 3, 2024 and sell it today you would lose (6.00) from holding Penghua Shenzhen Energy or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jizhong Energy Resources vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Jizhong Energy Resources |
| Penghua Shenzhen Energy |
Jizhong Energy and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jizhong Energy and Penghua Shenzhen
The main advantage of trading using opposite Jizhong Energy and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jizhong Energy position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital Medical |
| Penghua Shenzhen vs. China Publishing Media | Penghua Shenzhen vs. Biwin Storage Technology | Penghua Shenzhen vs. Heilongjiang Publishing Media | Penghua Shenzhen vs. Chengdu B ray Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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