Correlation Between Penyao Environmental and China Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Penyao Environmental Protection and China Sports Industry, you can compare the effects of market volatilities on Penyao Environmental and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and China Sports.
Diversification Opportunities for Penyao Environmental and China Sports
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Penyao and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and China Sports go up and down completely randomly.
Pair Corralation between Penyao Environmental and China Sports
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 1.19 times more return on investment than China Sports. However, Penyao Environmental is 1.19 times more volatile than China Sports Industry. It trades about 0.04 of its potential returns per unit of risk. China Sports Industry is currently generating about 0.01 per unit of risk. If you would invest 532.00 in Penyao Environmental Protection on September 3, 2024 and sell it today you would earn a total of 103.00 from holding Penyao Environmental Protection or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. China Sports Industry
Performance |
| Timeline |
| Penyao Environmental |
| China Sports Industry |
Penyao Environmental and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and China Sports
The main advantage of trading using opposite Penyao Environmental and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Penyao Environmental vs. Cultural Investment Holdings | Penyao Environmental vs. Gome Telecom Equipment | Penyao Environmental vs. Bus Online Co | Penyao Environmental vs. Holitech Technology Co |
| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |