Correlation Between Penyao Environmental and Guangdong Liantai
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By analyzing existing cross correlation between Penyao Environmental Protection and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Penyao Environmental and Guangdong Liantai 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 Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Guangdong Liantai.
Diversification Opportunities for Penyao Environmental and Guangdong Liantai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Penyao and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai 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 Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Penyao Environmental and Guangdong Liantai
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 2.15 times more return on investment than Guangdong Liantai. However, Penyao Environmental is 2.15 times more volatile than Guangdong Liantai Environmental. It trades about 0.03 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.03 per unit of risk. If you would invest 561.00 in Penyao Environmental Protection on September 27, 2024 and sell it today you would earn a total of 7.00 from holding Penyao Environmental Protection or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Penyao Environmental |
| Guangdong Liantai |
Penyao Environmental and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Guangdong Liantai
The main advantage of trading using opposite Penyao Environmental and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| Penyao Environmental vs. Shenzhen MYS Environmental | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Shenzhen Bingchuan Network | Penyao Environmental vs. Penghua Shenzhen Energy |
| Guangdong Liantai vs. Ming Yang Smart | Guangdong Liantai vs. 159681 | Guangdong Liantai vs. 159005 | Guangdong Liantai vs. Loctek Ergonomic Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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