Correlation Between Puyang Huicheng and New China
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By analyzing existing cross correlation between Puyang Huicheng Electronic and New China Life, you can compare the effects of market volatilities on Puyang Huicheng and New China 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 Puyang Huicheng with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyang Huicheng and New China.
Diversification Opportunities for Puyang Huicheng and New China
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Puyang and New is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Puyang Huicheng Electronic and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Puyang Huicheng 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 Puyang Huicheng Electronic are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Puyang Huicheng i.e., Puyang Huicheng and New China go up and down completely randomly.
Pair Corralation between Puyang Huicheng and New China
Assuming the 90 days trading horizon Puyang Huicheng is expected to generate 2.2 times less return on investment than New China. In addition to that, Puyang Huicheng is 1.01 times more volatile than New China Life. It trades about 0.06 of its total potential returns per unit of risk. New China Life is currently generating about 0.14 per unit of volatility. If you would invest 3,030 in New China Life on November 3, 2024 and sell it today you would earn a total of 1,733 from holding New China Life or generate 57.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puyang Huicheng Electronic vs. New China Life
Performance |
| Timeline |
| Puyang Huicheng Elec |
| New China Life |
Puyang Huicheng and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyang Huicheng and New China
The main advantage of trading using opposite Puyang Huicheng and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyang Huicheng position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Wanhua Chemical Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng vs. Shandong Gold Mining |
| New China vs. Bingo Software Co | New China vs. GuoChuang Software Co | New China vs. Glodon Software Co | New China vs. Luolai Home Textile |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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