Correlation Between Penghua Shenzhen and Guangzhou Haige
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Guangzhou Haige Communications, you can compare the effects of market volatilities on Penghua Shenzhen and Guangzhou Haige 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 Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Guangzhou Haige.
Diversification Opportunities for Penghua Shenzhen and Guangzhou Haige
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and Guangzhou is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm 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 Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Guangzhou Haige
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 357.67 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 2.39 times less risky than Guangzhou Haige. It trades about 0.0 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 860.00 in Guangzhou Haige Communications on August 27, 2024 and sell it today you would earn a total of 327.00 from holding Guangzhou Haige Communications or generate 38.02% 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. Guangzhou Haige Communications
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Guangzhou Haige Comm |
Penghua Shenzhen and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Guangzhou Haige
The main advantage of trading using opposite Penghua Shenzhen and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige'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 |
| Guangzhou Haige vs. Shenzhen MYS Environmental | Guangzhou Haige vs. AVIC Fund Management | Guangzhou Haige vs. Shenzhen Bingchuan Network | Guangzhou Haige 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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