Correlation Between Penghua Shenzhen and Henan Lantian
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Henan Lantian Gas, you can compare the effects of market volatilities on Penghua Shenzhen and Henan Lantian 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 Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Henan Lantian.
Diversification Opportunities for Penghua Shenzhen and Henan Lantian
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and Henan is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Henan Lantian go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Henan Lantian
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.55 times more return on investment than Henan Lantian. However, Penghua Shenzhen Energy is 1.82 times less risky than Henan Lantian. It trades about -0.08 of its potential returns per unit of risk. Henan Lantian Gas is currently generating about -0.12 per unit of risk. If you would invest 633.00 in Penghua Shenzhen Energy on November 3, 2024 and sell it today you would lose (6.00) from holding Penghua Shenzhen Energy or give up 0.95% 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. Henan Lantian Gas
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Henan Lantian Gas |
Penghua Shenzhen and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Henan Lantian
The main advantage of trading using opposite Penghua Shenzhen and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.| Penghua Shenzhen vs. China Publishing Media | Penghua Shenzhen vs. Biwin Storage Technology | Penghua Shenzhen vs. Heilongjiang Publishing Media | Penghua Shenzhen vs. Chengdu B ray Media |
| Henan Lantian vs. Wintao Communications Co | Henan Lantian vs. Tongyu Communication | Henan Lantian vs. Beijing Bewinner Communications | Henan Lantian vs. Bank of Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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