Correlation Between Penghua Shenzhen and Haoxiangni Jujube
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Haoxiangni Jujube Co, you can compare the effects of market volatilities on Penghua Shenzhen and Haoxiangni Jujube 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 Haoxiangni Jujube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Haoxiangni Jujube.
Diversification Opportunities for Penghua Shenzhen and Haoxiangni Jujube
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Penghua and Haoxiangni is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Haoxiangni Jujube Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxiangni Jujube 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 Haoxiangni Jujube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxiangni Jujube has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Haoxiangni Jujube go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Haoxiangni Jujube
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to under-perform the Haoxiangni Jujube. But the stock apears to be less risky and, when comparing its historical volatility, Penghua Shenzhen Energy is 12.81 times less risky than Haoxiangni Jujube. The stock trades about -0.08 of its potential returns per unit of risk. The Haoxiangni Jujube Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Haoxiangni Jujube Co on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Haoxiangni Jujube Co or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Haoxiangni Jujube Co
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Haoxiangni Jujube |
Penghua Shenzhen and Haoxiangni Jujube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Haoxiangni Jujube
The main advantage of trading using opposite Penghua Shenzhen and Haoxiangni Jujube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Haoxiangni Jujube 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 Haoxiangni Jujube will offset losses from the drop in Haoxiangni Jujube'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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