Correlation Between Penyao Environmental and Chengtun Mining
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By analyzing existing cross correlation between Penyao Environmental Protection and Chengtun Mining Group, you can compare the effects of market volatilities on Penyao Environmental and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Chengtun Mining.
Diversification Opportunities for Penyao Environmental and Chengtun Mining
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Penyao and Chengtun is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Chengtun Mining go up and down completely randomly.
Pair Corralation between Penyao Environmental and Chengtun Mining
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 0.88 times more return on investment than Chengtun Mining. However, Penyao Environmental Protection is 1.13 times less risky than Chengtun Mining. It trades about 0.01 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.01 per unit of risk. If you would invest 521.00 in Penyao Environmental Protection on November 2, 2024 and sell it today you would lose (12.00) from holding Penyao Environmental Protection or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Chengtun Mining Group
Performance |
| Timeline |
| Penyao Environmental |
| Chengtun Mining Group |
Penyao Environmental and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Chengtun Mining
The main advantage of trading using opposite Penyao Environmental and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Penyao Environmental vs. Industrial and Commercial | Penyao Environmental vs. Kweichow Moutai Co | Penyao Environmental vs. Agricultural Bank of | Penyao Environmental vs. China Mobile Limited |
| Chengtun Mining vs. Touchstone International Medical | Chengtun Mining vs. Zhonghong Pulin Medical | Chengtun Mining vs. Zhongrun Resources Investment | Chengtun Mining vs. Allmed Medical Products |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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