Correlation Between Penyao Environmental and Huaibei Mining
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By analyzing existing cross correlation between Penyao Environmental Protection and Huaibei Mining Holdings, you can compare the effects of market volatilities on Penyao Environmental and Huaibei 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Huaibei Mining.
Diversification Opportunities for Penyao Environmental and Huaibei Mining
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Penyao and Huaibei is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Huaibei Mining go up and down completely randomly.
Pair Corralation between Penyao Environmental and Huaibei Mining
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 1.36 times more return on investment than Huaibei Mining. However, Penyao Environmental is 1.36 times more volatile than Huaibei Mining Holdings. It trades about 0.15 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.14 per unit of risk. If you would invest 507.00 in Penyao Environmental Protection on November 29, 2024 and sell it today you would earn a total of 15.00 from holding Penyao Environmental Protection or generate 2.96% 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. Huaibei Mining Holdings
Performance |
| Timeline |
| Penyao Environmental |
| Huaibei Mining Holdings |
Penyao Environmental and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Huaibei Mining
The main advantage of trading using opposite Penyao Environmental and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Huaibei 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Penyao Environmental vs. Harbin Hatou Investment | Penyao Environmental vs. Dareway Software Co | Penyao Environmental vs. Huawen Media Investment | Penyao Environmental vs. Hangzhou Pinming Software |
| Huaibei Mining vs. Zhejiang Publishing Media | Huaibei Mining vs. Dhc Software Co | Huaibei Mining vs. iSoftStone Information Technology | Huaibei Mining vs. Kuang Chi Technologies |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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