Correlation Between Puyang Huicheng and China Zheshang
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By analyzing existing cross correlation between Puyang Huicheng Electronic and China Zheshang Bank, you can compare the effects of market volatilities on Puyang Huicheng and China Zheshang 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 China Zheshang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyang Huicheng and China Zheshang.
Diversification Opportunities for Puyang Huicheng and China Zheshang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Puyang and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Puyang Huicheng Electronic and China Zheshang Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Zheshang Bank 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 China Zheshang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Zheshang Bank has no effect on the direction of Puyang Huicheng i.e., Puyang Huicheng and China Zheshang go up and down completely randomly.
Pair Corralation between Puyang Huicheng and China Zheshang
Assuming the 90 days trading horizon Puyang Huicheng Electronic is expected to under-perform the China Zheshang. In addition to that, Puyang Huicheng is 2.31 times more volatile than China Zheshang Bank. It trades about -0.01 of its total potential returns per unit of risk. China Zheshang Bank is currently generating about 0.02 per unit of volatility. If you would invest 270.00 in China Zheshang Bank on September 13, 2024 and sell it today you would earn a total of 27.00 from holding China Zheshang Bank or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Puyang Huicheng Electronic vs. China Zheshang Bank
Performance |
| Timeline |
| Puyang Huicheng Elec |
| China Zheshang Bank |
Puyang Huicheng and China Zheshang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyang Huicheng and China Zheshang
The main advantage of trading using opposite Puyang Huicheng and China Zheshang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyang Huicheng position performs unexpectedly, China Zheshang 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 China Zheshang will offset losses from the drop in China Zheshang'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 |
| China Zheshang vs. Puyang Huicheng Electronic | China Zheshang vs. Shanghai Shuixing Home | China Zheshang vs. Nanxing Furniture Machinery | China Zheshang vs. Leaguer Shenzhen MicroElectronics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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