Correlation Between Penyao Environmental and Qingdao NovelBeam
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By analyzing existing cross correlation between Penyao Environmental Protection and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Penyao Environmental and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Qingdao NovelBeam.
Diversification Opportunities for Penyao Environmental and Qingdao NovelBeam
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Penyao and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Penyao Environmental and Qingdao NovelBeam
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 1.99 times more return on investment than Qingdao NovelBeam. However, Penyao Environmental is 1.99 times more volatile than Qingdao NovelBeam Technology. It trades about 0.25 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about -0.02 per unit of risk. If you would invest 495.00 in Penyao Environmental Protection on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Penyao Environmental Protection or generate 28.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Penyao Environmental |
| Qingdao NovelBeam |
Penyao Environmental and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penyao Environmental and Qingdao NovelBeam
The main advantage of trading using opposite Penyao Environmental and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| Penyao Environmental vs. Cultural Investment Holdings | Penyao Environmental vs. Gome Telecom Equipment | Penyao Environmental vs. Bus Online Co | Penyao Environmental vs. Holitech Technology Co |
| Qingdao NovelBeam vs. Pengxin International Mining | Qingdao NovelBeam vs. Beijing Jiaman Dress | Qingdao NovelBeam vs. Union Semiconductor Co | Qingdao NovelBeam vs. Chengtun Mining Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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