Correlation Between Penghua Shenzhen and Jiangxi Copper
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Jiangxi Copper Co, you can compare the effects of market volatilities on Penghua Shenzhen and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Jiangxi Copper.
Diversification Opportunities for Penghua Shenzhen and Jiangxi Copper
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penghua and Jiangxi is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Jiangxi Copper
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.3 times more return on investment than Jiangxi Copper. However, Penghua Shenzhen Energy is 3.35 times less risky than Jiangxi Copper. It trades about 0.19 of its potential returns per unit of risk. Jiangxi Copper Co is currently generating about -0.23 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Jiangxi Copper Co
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Jiangxi Copper |
Penghua Shenzhen and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Jiangxi Copper
The main advantage of trading using opposite Penghua Shenzhen and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper'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 |
| Jiangxi Copper vs. Wanhua Chemical Group | Jiangxi Copper vs. Shandong Gold Mining | Jiangxi Copper vs. Rongsheng Petrochemical Co | Jiangxi Copper 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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