Correlation Between Penyao Environmental and Goke Microelectronics
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By analyzing existing cross correlation between Penyao Environmental Protection and Goke Microelectronics Co, you can compare the effects of market volatilities on Penyao Environmental and Goke Microelectronics 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 Goke Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Goke Microelectronics.
Diversification Opportunities for Penyao Environmental and Goke Microelectronics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Penyao and Goke is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Goke Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goke Microelectronics 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 Goke Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goke Microelectronics has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Goke Microelectronics go up and down completely randomly.
Pair Corralation between Penyao Environmental and Goke Microelectronics
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to under-perform the Goke Microelectronics. In addition to that, Penyao Environmental is 1.13 times more volatile than Goke Microelectronics Co. It trades about -0.06 of its total potential returns per unit of risk. Goke Microelectronics Co is currently generating about 0.13 per unit of volatility. If you would invest 6,699 in Goke Microelectronics Co on September 30, 2024 and sell it today you would earn a total of 439.00 from holding Goke Microelectronics Co or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Goke Microelectronics Co
Performance |
| Timeline |
| Penyao Environmental |
| Goke Microelectronics |
Penyao Environmental and Goke Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Goke Microelectronics
The main advantage of trading using opposite Penyao Environmental and Goke Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Goke Microelectronics 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 Goke Microelectronics will offset losses from the drop in Goke Microelectronics' long position.| Penyao Environmental vs. Shenzhen MYS Environmental | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Shenzhen Bingchuan Network | Penyao Environmental vs. Penghua Shenzhen Energy |
| Goke Microelectronics vs. Ming Yang Smart | Goke Microelectronics vs. 159681 | Goke Microelectronics vs. 159005 | Goke Microelectronics vs. Loctek Ergonomic Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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