Correlation Between Penyao Environmental and Xinjiang Baodi
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By analyzing existing cross correlation between Penyao Environmental Protection and Xinjiang Baodi Mining, you can compare the effects of market volatilities on Penyao Environmental and Xinjiang Baodi 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 Xinjiang Baodi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Xinjiang Baodi.
Diversification Opportunities for Penyao Environmental and Xinjiang Baodi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Penyao and Xinjiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Xinjiang Baodi Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Baodi Mining 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 Xinjiang Baodi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Baodi Mining has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Xinjiang Baodi go up and down completely randomly.
Pair Corralation between Penyao Environmental and Xinjiang Baodi
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 1.33 times more return on investment than Xinjiang Baodi. However, Penyao Environmental is 1.33 times more volatile than Xinjiang Baodi Mining. It trades about 0.15 of its potential returns per unit of risk. Xinjiang Baodi Mining is currently generating about 0.02 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Xinjiang Baodi Mining
Performance |
| Timeline |
| Penyao Environmental |
| Xinjiang Baodi Mining |
Penyao Environmental and Xinjiang Baodi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Xinjiang Baodi
The main advantage of trading using opposite Penyao Environmental and Xinjiang Baodi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Xinjiang Baodi 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 Xinjiang Baodi will offset losses from the drop in Xinjiang Baodi'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 |
| Xinjiang Baodi vs. TianJin 712 Communication | Xinjiang Baodi vs. Pengxin International Mining | Xinjiang Baodi vs. Shengda Mining Co | Xinjiang Baodi vs. Jilin Jlu Communication |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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