Correlation Between Shenzhen MYS and Penghua Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Penghua Shenzhen.
Diversification Opportunities for Shenzhen MYS and Penghua Shenzhen
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Penghua is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Penghua Shenzhen
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the Penghua Shenzhen. In addition to that, Shenzhen MYS is 4.68 times more volatile than Penghua Shenzhen Energy. It trades about -0.06 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Penghua Shenzhen Energy |
Shenzhen MYS and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Penghua Shenzhen
The main advantage of trading using opposite Shenzhen MYS and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |