Correlation Between Shenzhen MYS and Penghua Shenzhen
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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
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Penghua is -0.77. 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 generate 3.13 times more return on investment than Penghua Shenzhen. However, Shenzhen MYS is 3.13 times more volatile than Penghua Shenzhen Energy. It trades about 0.05 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.08 per unit of risk. If you would invest 282.00 in Shenzhen MYS Environmental on August 25, 2024 and sell it today you would earn a total of 93.00 from holding Shenzhen MYS Environmental or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| 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. Industrial and Commercial | Penghua Shenzhen vs. Kweichow Moutai Co | Penghua Shenzhen vs. Agricultural Bank of | Penghua Shenzhen vs. China Mobile Limited |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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