Correlation Between Beijing SPC and Penyao Environmental
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By analyzing existing cross correlation between Beijing SPC Environment and Penyao Environmental Protection, you can compare the effects of market volatilities on Beijing SPC 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 Beijing SPC with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SPC and Penyao Environmental.
Diversification Opportunities for Beijing SPC and Penyao Environmental
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Penyao is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SPC Environment and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Beijing SPC 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 Beijing SPC Environment 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 Beijing SPC i.e., Beijing SPC and Penyao Environmental go up and down completely randomly.
Pair Corralation between Beijing SPC and Penyao Environmental
Assuming the 90 days trading horizon Beijing SPC Environment is expected to under-perform the Penyao Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Beijing SPC Environment is 1.26 times less risky than Penyao Environmental. The stock trades about -0.02 of its potential returns per unit of risk. The Penyao Environmental Protection is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 503.00 in Penyao Environmental Protection on September 2, 2024 and sell it today you would earn a total of 132.00 from holding Penyao Environmental Protection or generate 26.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SPC Environment vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Beijing SPC Environment |
| Penyao Environmental |
Beijing SPC and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SPC and Penyao Environmental
The main advantage of trading using opposite Beijing SPC and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SPC 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.| Beijing SPC vs. Shenzhen MYS Environmental | Beijing SPC vs. AVIC Fund Management | Beijing SPC vs. Shenzhen Bingchuan Network | Beijing SPC vs. Penghua Shenzhen Energy |
| Penyao Environmental vs. Cultural Investment Holdings | Penyao Environmental vs. Gome Telecom Equipment | Penyao Environmental vs. Bus Online Co | Penyao Environmental vs. Holitech Technology Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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