Correlation Between Penyao Environmental and GreenTech Environmental
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By analyzing existing cross correlation between Penyao Environmental Protection and GreenTech Environmental Co, you can compare the effects of market volatilities on Penyao Environmental and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and GreenTech Environmental.
Diversification Opportunities for Penyao Environmental and GreenTech Environmental
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Penyao and GreenTech is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Penyao Environmental and GreenTech Environmental
Assuming the 90 days trading horizon Penyao Environmental is expected to generate 1.54 times less return on investment than GreenTech Environmental. But when comparing it to its historical volatility, Penyao Environmental Protection is 1.46 times less risky than GreenTech Environmental. It trades about 0.01 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,534 in GreenTech Environmental Co on August 29, 2024 and sell it today you would earn a total of 5.00 from holding GreenTech Environmental Co or generate 0.33% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Penyao Environmental |
| GreenTech Environmental |
Penyao Environmental and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and GreenTech Environmental
The main advantage of trading using opposite Penyao Environmental and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Penyao Environmental vs. Kweichow Moutai Co | Penyao Environmental vs. Shenzhen Mindray Bio Medical | Penyao Environmental vs. G bits Network Technology | Penyao Environmental vs. Shenzhen Transsion Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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