Correlation Between Penghua Shenzhen and Jizhong Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Penghua Shenzhen Energy and Jizhong Energy Resources, you can compare the effects of market volatilities on Penghua Shenzhen and Jizhong Energy 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 Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Jizhong Energy.
Diversification Opportunities for Penghua Shenzhen and Jizhong Energy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Penghua and Jizhong is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources 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 Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Jizhong Energy go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Jizhong Energy
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.46 times more return on investment than Jizhong Energy. However, Penghua Shenzhen Energy is 2.19 times less risky than Jizhong Energy. It trades about -0.08 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about -0.15 per unit of risk. 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 |
Penghua Shenzhen Energy vs. Jizhong Energy Resources
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Jizhong Energy Resources |
Penghua Shenzhen and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Jizhong Energy
The main advantage of trading using opposite Penghua Shenzhen and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| 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 |
| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |