Correlation Between Penyao Environmental and Citic Guoan
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By analyzing existing cross correlation between Penyao Environmental Protection and Citic Guoan Wine, you can compare the effects of market volatilities on Penyao Environmental and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Citic Guoan.
Diversification Opportunities for Penyao Environmental and Citic Guoan
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Penyao and Citic is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Citic Guoan go up and down completely randomly.
Pair Corralation between Penyao Environmental and Citic Guoan
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to under-perform the Citic Guoan. In addition to that, Penyao Environmental is 1.16 times more volatile than Citic Guoan Wine. It trades about -0.28 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.11 per unit of volatility. If you would invest 526.00 in Citic Guoan Wine on November 1, 2024 and sell it today you would lose (25.00) from holding Citic Guoan Wine or give up 4.75% 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. Citic Guoan Wine
Performance |
| Timeline |
| Penyao Environmental |
| Citic Guoan Wine |
Penyao Environmental and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Citic Guoan
The main advantage of trading using opposite Penyao Environmental and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Penyao Environmental vs. Cultural Investment Holdings | Penyao Environmental vs. Western Metal Materials | Penyao Environmental vs. NBTM New Materials | Penyao Environmental vs. Jiangsu Yueda Investment |
| Citic Guoan vs. Harvest Fund Management | Citic Guoan vs. Cicc Fund Management | Citic Guoan vs. China Asset Management | Citic Guoan vs. Innovative Medical Management |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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