Correlation Between Penyao Environmental and Shenzhen Silver
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By analyzing existing cross correlation between Penyao Environmental Protection and Shenzhen Silver Basis, you can compare the effects of market volatilities on Penyao Environmental and Shenzhen Silver 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 Penyao Environmental with a short position of Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Shenzhen Silver.
Diversification Opportunities for Penyao Environmental and Shenzhen Silver
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penyao and Shenzhen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis and Penyao Environmental 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 Penyao Environmental Protection are associated (or correlated) with Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Penyao Environmental and Shenzhen Silver
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 1.28 times more return on investment than Shenzhen Silver. However, Penyao Environmental is 1.28 times more volatile than Shenzhen Silver Basis. It trades about -0.2 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.48 per unit of risk. If you would invest 595.00 in Penyao Environmental Protection on October 12, 2024 and sell it today you would lose (81.00) from holding Penyao Environmental Protection or give up 13.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Penyao Environmental |
| Shenzhen Silver Basis |
Penyao Environmental and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Shenzhen Silver
The main advantage of trading using opposite Penyao Environmental and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Penyao Environmental vs. Luyin Investment Group | Penyao Environmental vs. Hunan Investment Group | Penyao Environmental vs. Healthcare Co | Penyao Environmental vs. Zhongshan Public Utilities |
| Shenzhen Silver vs. Tongxing Environmental Protection | Shenzhen Silver vs. Penyao Environmental Protection | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Hunan Investment Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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