Correlation Between Shenzhen Bingchuan and Penghua Shenzhen
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Shenzhen Bingchuan and Penghua Shenzhen 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 Shenzhen Bingchuan with a short position of Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Penghua Shenzhen.
Diversification Opportunities for Shenzhen Bingchuan and Penghua Shenzhen
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Penghua is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy and Shenzhen Bingchuan 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 Shenzhen Bingchuan Network are associated (or correlated) with Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Penghua Shenzhen
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 7.79 times more return on investment than Penghua Shenzhen. However, Shenzhen Bingchuan is 7.79 times more volatile than Penghua Shenzhen Energy. It trades about 0.09 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.02 per unit of risk. If you would invest 1,440 in Shenzhen Bingchuan Network on October 22, 2024 and sell it today you would earn a total of 631.00 from holding Shenzhen Bingchuan Network or generate 43.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Penghua Shenzhen Energy |
Shenzhen Bingchuan and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Penghua Shenzhen
The main advantage of trading using opposite Shenzhen Bingchuan and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Shenzhen Bingchuan vs. Rising Nonferrous Metals | Shenzhen Bingchuan vs. Jahen Household Products | Shenzhen Bingchuan vs. Ye Chiu Metal | Shenzhen Bingchuan vs. Jiangsu Financial Leasing |
| Penghua Shenzhen vs. Xizi Clean Energy | Penghua Shenzhen vs. Shenzhen Noposion Agrochemicals | Penghua Shenzhen vs. Chongqing Changan Automobile | Penghua Shenzhen vs. Hengli Petrochemical Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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