Correlation Between Penghua Shenzhen and Xinke Material
Specify exactly 2 symbols:
By analyzing existing cross correlation between Penghua Shenzhen Energy and Xinke Material, you can compare the effects of market volatilities on Penghua Shenzhen and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Xinke Material.
Diversification Opportunities for Penghua Shenzhen and Xinke Material
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and Xinke is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Xinke Material go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Xinke Material
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to under-perform the Xinke Material. But the stock apears to be less risky and, when comparing its historical volatility, Penghua Shenzhen Energy is 2.27 times less risky than Xinke Material. The stock trades about 0.0 of its potential returns per unit of risk. The Xinke Material is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Xinke Material on August 29, 2024 and sell it today you would lose (35.00) from holding Xinke Material or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Xinke Material
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Xinke Material |
Penghua Shenzhen and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Xinke Material
The main advantage of trading using opposite Penghua Shenzhen and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material'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 |
| Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Shandong Gold Mining | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Inner Mongolia BaoTou |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |