Correlation Between Penghua Shenzhen and Tongyu Communication
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Tongyu Communication, you can compare the effects of market volatilities on Penghua Shenzhen and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Tongyu Communication.
Diversification Opportunities for Penghua Shenzhen and Tongyu Communication
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penghua and Tongyu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Tongyu Communication go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Tongyu Communication
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 10.58 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 10.02 times less risky than Tongyu Communication. It trades about 0.22 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,343 in Tongyu Communication on August 30, 2024 and sell it today you would earn a total of 364.00 from holding Tongyu Communication or generate 27.1% 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. Tongyu Communication
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Tongyu Communication |
Penghua Shenzhen and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Tongyu Communication
The main advantage of trading using opposite Penghua Shenzhen and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Penghua Shenzhen vs. Zhongtong Guomai Communication | Penghua Shenzhen vs. Bus Online Co | Penghua Shenzhen vs. Guangzhou Dongfang Hotel | Penghua Shenzhen vs. Eastern Communications Co |
| Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. Bank of China | Tongyu Communication vs. China Construction Bank |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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