Correlation Between Penyao Environmental and Dow Jones
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By analyzing existing cross correlation between Penyao Environmental Protection and Dow Jones Industrial, you can compare the effects of market volatilities on Penyao Environmental and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penyao Environmental and Dow Jones.
Diversification Opportunities for Penyao Environmental and Dow Jones
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Penyao and Dow is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Penyao Environmental Protectio and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Penyao Environmental i.e., Penyao Environmental and Dow Jones go up and down completely randomly.
Pair Corralation between Penyao Environmental and Dow Jones
Assuming the 90 days trading horizon Penyao Environmental Protection is expected to generate 3.11 times more return on investment than Dow Jones. However, Penyao Environmental is 3.11 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 460.00 in Penyao Environmental Protection on August 25, 2024 and sell it today you would earn a total of 90.00 from holding Penyao Environmental Protection or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.79% |
| Values | Daily Returns |
Penyao Environmental Protectio vs. Dow Jones Industrial
Performance |
| Timeline |
Penyao Environmental and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Penyao Environmental Protection
Pair trading matchups for Penyao Environmental
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Penyao Environmental and Dow Jones
The main advantage of trading using opposite Penyao Environmental and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penyao Environmental position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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