Correlation Between Penghua Shenzhen and Hubei Yingtong
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Penghua Shenzhen and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Hubei Yingtong.
Diversification Opportunities for Penghua Shenzhen and Hubei Yingtong
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Penghua and Hubei is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Hubei Yingtong
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 17.61 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 4.16 times less risky than Hubei Yingtong. It trades about 0.01 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,147 in Hubei Yingtong Telecommunication on November 19, 2024 and sell it today you would earn a total of 351.00 from holding Hubei Yingtong Telecommunication or generate 30.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Hubei Yingtong Telec |
Penghua Shenzhen and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Hubei Yingtong
The main advantage of trading using opposite Penghua Shenzhen and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| Penghua Shenzhen vs. Ming Yang Smart | Penghua Shenzhen vs. 159681 | Penghua Shenzhen vs. 159005 | Penghua Shenzhen vs. Loctek Ergonomic Technology |
| Hubei Yingtong vs. ROPEOK Technology Group | Hubei Yingtong vs. Ningbo Ligong Online | Hubei Yingtong vs. Invengo Information Technology | Hubei Yingtong vs. 360 Security Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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