Correlation Between Penghua Shenzhen and Zhongtong Guomai
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Penghua Shenzhen and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Zhongtong Guomai.
Diversification Opportunities for Penghua Shenzhen and Zhongtong Guomai
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Penghua and Zhongtong is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Zhongtong Guomai
Assuming the 90 days trading horizon Penghua Shenzhen is expected to generate 14.02 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, Penghua Shenzhen Energy is 7.75 times less risky than Zhongtong Guomai. It trades about 0.27 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 717.00 in Zhongtong Guomai Communication on November 27, 2024 and sell it today you would earn a total of 154.00 from holding Zhongtong Guomai Communication or generate 21.48% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Zhongtong Guomai Com |
Penghua Shenzhen and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Zhongtong Guomai
The main advantage of trading using opposite Penghua Shenzhen and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Penghua Shenzhen vs. Kidswant Children Products | Penghua Shenzhen vs. Lootom Telcovideo Network | Penghua Shenzhen vs. Ningbo Jintian Copper | Penghua Shenzhen vs. Changchun BCHT Biotechnology |
| Zhongtong Guomai vs. Fangda Special Steel | Zhongtong Guomai vs. Hangzhou Guotai Environmental | Zhongtong Guomai vs. Offcn Education Technology | Zhongtong Guomai vs. Jiangsu Phoenix Publishing |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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