Correlation Between Penghua Shenzhen and China Reform
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By analyzing existing cross correlation between Penghua Shenzhen Energy and China Reform Health, you can compare the effects of market volatilities on Penghua Shenzhen and China Reform 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 Penghua Shenzhen with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and China Reform.
Diversification Opportunities for Penghua Shenzhen and China Reform
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penghua and China is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and Penghua Shenzhen 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 Penghua Shenzhen Energy are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and China Reform go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and China Reform
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 21.39 times less return on investment than China Reform. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 3.09 times less risky than China Reform. It trades about 0.0 of its potential returns per unit of risk. China Reform Health is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,032 in China Reform Health on September 14, 2024 and sell it today you would earn a total of 290.00 from holding China Reform Health or generate 28.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. China Reform Health
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| China Reform Health |
Penghua Shenzhen and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and China Reform
The main advantage of trading using opposite Penghua Shenzhen and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Penghua Shenzhen vs. Kweichow Moutai Co | Penghua Shenzhen vs. Agricultural Bank of | Penghua Shenzhen vs. China Mobile Limited | Penghua Shenzhen vs. China Construction Bank |
| China Reform vs. Guangzhou Boji Medical | China Reform vs. Shenzhen Glory Medical | China Reform vs. Changchun BCHT Biotechnology | China Reform vs. Beijing Wandong Medical |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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