Correlation Between Penghua Shenzhen and Zhejiang Construction
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Zhejiang Construction Investment, you can compare the effects of market volatilities on Penghua Shenzhen and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Zhejiang Construction.
Diversification Opportunities for Penghua Shenzhen and Zhejiang Construction
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penghua and Zhejiang is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Zhejiang Construction
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to under-perform the Zhejiang Construction. But the stock apears to be less risky and, when comparing its historical volatility, Penghua Shenzhen Energy is 5.71 times less risky than Zhejiang Construction. The stock trades about -0.02 of its potential returns per unit of risk. The Zhejiang Construction Investment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 888.00 in Zhejiang Construction Investment on September 1, 2024 and sell it today you would earn a total of 113.00 from holding Zhejiang Construction Investment or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.37% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Zhejiang Construction |
Penghua Shenzhen and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Zhejiang Construction
The main advantage of trading using opposite Penghua Shenzhen and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Penghua Shenzhen vs. Ningbo Ligong Online | Penghua Shenzhen vs. Duzhe Publishing Media | Penghua Shenzhen vs. Chinese Universe Publishing | Penghua Shenzhen vs. Sportsoul Co Ltd |
| Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. China Construction Bank | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. Agricultural Bank of |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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