Correlation Between Penyao Environmental and Changjiang Jinggong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Penyao Environmental Protection and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Penyao Environmental and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Changjiang Jinggong.
Diversification Opportunities for Penyao Environmental and Changjiang Jinggong
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Penyao and Changjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Penyao Environmental and Changjiang Jinggong
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 3.68 times more return on investment than Changjiang Jinggong. However, Penyao Environmental is 3.68 times more volatile than Changjiang Jinggong Steel. It trades about 0.25 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.08 per unit of risk. If you would invest 495.00 in Penyao Environmental Protection on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Penyao Environmental Protection or generate 28.28% 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. Changjiang Jinggong Steel
Performance |
| Timeline |
| Penyao Environmental |
| Changjiang Jinggong Steel |
Penyao Environmental and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Changjiang Jinggong
The main advantage of trading using opposite Penyao Environmental and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's 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 |
| Changjiang Jinggong vs. China Life Insurance | Changjiang Jinggong vs. HaiXin Foods Co | Changjiang Jinggong vs. Ping An Insurance | Changjiang Jinggong vs. China Publishing Media |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |