Correlation Between Penghua Shenzhen and Penyao Environmental
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Penyao Environmental Protection, you can compare the effects of market volatilities on Penghua Shenzhen and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Penyao Environmental.
Diversification Opportunities for Penghua Shenzhen and Penyao Environmental
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Penghua and Penyao is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Penyao Environmental go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Penyao Environmental
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.1 times more return on investment than Penyao Environmental. However, Penghua Shenzhen Energy is 9.66 times less risky than Penyao Environmental. It trades about 0.39 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about 0.03 per unit of risk. If you would invest 601.00 in Penghua Shenzhen Energy on September 27, 2024 and sell it today you would earn a total of 29.00 from holding Penghua Shenzhen Energy or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Penyao Environmental |
Penghua Shenzhen and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Penyao Environmental
The main advantage of trading using opposite Penghua Shenzhen and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental'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 |
| Penyao Environmental vs. Shenzhen MYS Environmental | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Shenzhen Bingchuan Network | Penyao Environmental 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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