Correlation Between Penghua Shenzhen and Road Environment
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By analyzing existing cross correlation between Penghua Shenzhen Energy and Road Environment Technology, you can compare the effects of market volatilities on Penghua Shenzhen and Road Environment 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 Road Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penghua Shenzhen and Road Environment.
Diversification Opportunities for Penghua Shenzhen and Road Environment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penghua and Road is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Penghua Shenzhen Energy and Road Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Road Environment Tec 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 Road Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Road Environment Tec has no effect on the direction of Penghua Shenzhen i.e., Penghua Shenzhen and Road Environment go up and down completely randomly.
Pair Corralation between Penghua Shenzhen and Road Environment
Assuming the 90 days trading horizon Penghua Shenzhen Energy is expected to generate 0.19 times more return on investment than Road Environment. However, Penghua Shenzhen Energy is 5.34 times less risky than Road Environment. It trades about -0.02 of its potential returns per unit of risk. Road Environment Technology is currently generating about -0.04 per unit of risk. If you would invest 609.00 in Penghua Shenzhen Energy on August 30, 2024 and sell it today you would lose (8.00) from holding Penghua Shenzhen Energy or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penghua Shenzhen Energy vs. Road Environment Technology
Performance |
| Timeline |
| Penghua Shenzhen Energy |
| Road Environment Tec |
Penghua Shenzhen and Road Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penghua Shenzhen and Road Environment
The main advantage of trading using opposite Penghua Shenzhen and Road Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penghua Shenzhen position performs unexpectedly, Road Environment 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 Road Environment will offset losses from the drop in Road Environment's long position.| Penghua Shenzhen vs. Guangzhou Jinyi Media | Penghua Shenzhen vs. Oriental Times Media | Penghua Shenzhen vs. China Sports Industry | Penghua Shenzhen vs. Chengdu B ray Media |
| Road Environment vs. Shenzhen MYS Environmental | Road Environment vs. AVIC Fund Management | Road Environment vs. Shenzhen Bingchuan Network | Road Environment vs. Penghua Shenzhen Energy |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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