Correlation Between Penyao Environmental and Konfoong Materials
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By analyzing existing cross correlation between Penyao Environmental Protection and Konfoong Materials International, you can compare the effects of market volatilities on Penyao Environmental and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Konfoong Materials.
Diversification Opportunities for Penyao Environmental and Konfoong Materials
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Penyao and Konfoong is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Konfoong Materials go up and down completely randomly.
Pair Corralation between Penyao Environmental and Konfoong Materials
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to under-perform the Konfoong Materials. In addition to that, Penyao Environmental is 1.31 times more volatile than Konfoong Materials International. It trades about -0.18 of its total potential returns per unit of risk. Konfoong Materials International is currently generating about -0.2 per unit of volatility. If you would invest 7,358 in Konfoong Materials International on October 10, 2024 and sell it today you would lose (764.00) from holding Konfoong Materials International or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Konfoong Materials Internation
Performance |
| Timeline |
| Penyao Environmental |
| Konfoong Materials |
Penyao Environmental and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Konfoong Materials
The main advantage of trading using opposite Penyao Environmental and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Penyao Environmental vs. Ming Yang Smart | Penyao Environmental vs. 159681 | Penyao Environmental vs. 159005 | Penyao Environmental vs. Loctek Ergonomic Technology |
| Konfoong Materials vs. Shenzhen SDG Information | Konfoong Materials vs. Xinhua Winshare Publishing | Konfoong Materials vs. Longmaster Information Tech | Konfoong Materials vs. Jiangsu Yanghe Brewery |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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