Correlation Between Penghua Shenzhen and Bus Online
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Bus Online Co, you can compare the effects of market volatilities on Penghua Shenzhen and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Bus Online.
Diversification Opportunities for Penghua Shenzhen and Bus Online
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penghua and Bus is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Bus Online go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Bus Online
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.22 times more return on investment than Bus Online. However, Penghua Shenzhen Energy is 4.52 times less risky than Bus Online. It trades about 0.05 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.02 per unit of risk. If you would invest 556.00 in Penghua Shenzhen Energy on August 25, 2024 and sell it today you would earn a total of 46.00 from holding Penghua Shenzhen Energy or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Bus Online Co
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Bus Online |
Penghua Shenzhen and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Bus Online
The main advantage of trading using opposite Penghua Shenzhen and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Penghua Shenzhen vs. Industrial and Commercial | Penghua Shenzhen vs. Kweichow Moutai Co | Penghua Shenzhen vs. Agricultural Bank of | Penghua Shenzhen vs. China Mobile Limited |
| Bus Online vs. Shenzhen MYS Environmental | Bus Online vs. AVIC Fund Management | Bus Online vs. Shenzhen Bingchuan Network | Bus Online vs. Penghua Shenzhen Energy |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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