Correlation Between Penghua Shenzhen and Shenzhen Bingchuan
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Penghua Shenzhen and Shenzhen Bingchuan 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 Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Shenzhen Bingchuan.
Diversification Opportunities for Penghua Shenzhen and Shenzhen Bingchuan
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penghua and Shenzhen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Shenzhen Bingchuan
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.27 times more return on investment than Shenzhen Bingchuan. However, Penghua Shenzhen Energy is 3.72 times less risky than Shenzhen Bingchuan. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about -0.01 per unit of risk. If you would invest 542.00 in Penghua Shenzhen Energy on August 29, 2024 and sell it today you would earn a total of 59.00 from holding Penghua Shenzhen Energy or generate 10.89% 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. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Shenzhen Bingchuan |
Penghua Shenzhen and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Shenzhen Bingchuan
The main advantage of trading using opposite Penghua Shenzhen and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan'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 |
| Shenzhen Bingchuan vs. GreenTech Environmental Co | Shenzhen Bingchuan vs. Ningbo MedicalSystem Biotechnology | Shenzhen Bingchuan vs. Hang Xiao Steel | Shenzhen Bingchuan vs. Guangdong Liantai Environmental |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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