Correlation Between Penghua Shenzhen and AVCON Information
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By analyzing existing cross correlation between Penghua Shenzhen Energy and AVCON Information Tech, you can compare the effects of market volatilities on Penghua Shenzhen and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and AVCON Information.
Diversification Opportunities for Penghua Shenzhen and AVCON Information
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and AVCON is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and AVCON Information go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and AVCON Information
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 3.41 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 6.75 times less risky than AVCON Information. It trades about 0.19 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 444.00 in AVCON Information Tech on August 27, 2024 and sell it today you would earn a total of 28.00 from holding AVCON Information Tech or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. AVCON Information Tech
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| AVCON Information Tech |
Penghua Shenzhen and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and AVCON Information
The main advantage of trading using opposite Penghua Shenzhen and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Shenzhen MYS Environmental | AVCON Information vs. AVIC Fund Management | AVCON Information vs. Shenzhen Bingchuan Network | AVCON Information 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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