Correlation Between Penghua Shenzhen and TS Communications
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By analyzing existing cross correlation between Penghua Shenzhen Energy and TS Communications Co, you can compare the effects of market volatilities on Penghua Shenzhen and TS Communications 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 TS Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and TS Communications.
Diversification Opportunities for Penghua Shenzhen and TS Communications
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and 300570 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and TS Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Communications 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 TS Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Communications has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and TS Communications go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and TS Communications
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.12 times more return on investment than TS Communications. However, Penghua Shenzhen Energy is 8.35 times less risky than TS Communications. It trades about 0.19 of its potential returns per unit of risk. TS Communications Co is currently generating about -0.07 per unit of risk. If you would invest 588.00 in Penghua Shenzhen Energy on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Penghua Shenzhen Energy or generate 2.21% 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. TS Communications Co
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| TS Communications |
Penghua Shenzhen and TS Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and TS Communications
The main advantage of trading using opposite Penghua Shenzhen and TS Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, TS Communications 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 TS Communications will offset losses from the drop in TS Communications' 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 |
| TS Communications vs. Shenzhen MYS Environmental | TS Communications vs. AVIC Fund Management | TS Communications vs. Shenzhen Bingchuan Network | TS Communications 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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