Correlation Between Penghua Shenzhen and Industrial
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Industrial and Commercial, you can compare the effects of market volatilities on Penghua Shenzhen and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Industrial.
Diversification Opportunities for Penghua Shenzhen and Industrial
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Penghua and Industrial is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Industrial go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Industrial
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to under-perform the Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Penghua Shenzhen Energy is 1.11 times less risky than Industrial. The stock trades about 0.0 of its potential returns per unit of risk. The Industrial and Commercial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Industrial and Commercial on August 26, 2024 and sell it today you would earn a total of 202.00 from holding Industrial and Commercial or generate 50.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Industrial and Commercial
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Industrial and Commercial |
Penghua Shenzhen and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Industrial
The main advantage of trading using opposite Penghua Shenzhen and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. Anhui Huilong Agricultural | Industrial vs. Agricultural Bank of | Industrial vs. Masterwork Machinery | Industrial vs. Huitong Construction Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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