Correlation Between Miracll Chemicals and Penghua Shenzhen
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By analyzing existing cross correlation between Miracll Chemicals Co and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Miracll Chemicals and Penghua Shenzhen 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 Miracll Chemicals with a short position of Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miracll Chemicals and Penghua Shenzhen.
Diversification Opportunities for Miracll Chemicals and Penghua Shenzhen
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Miracll and Penghua is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Miracll Chemicals Co and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy and Miracll Chemicals 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 Miracll Chemicals Co are associated (or correlated) with Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Miracll Chemicals i.e., Miracll Chemicals and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Miracll Chemicals and Penghua Shenzhen
Assuming the 90 days trading horizon Miracll Chemicals Co is expected to generate 2.88 times more return on investment than Penghua Shenzhen. However, Miracll Chemicals is 2.88 times more volatile than Penghua Shenzhen Energy. It trades about 0.03 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.0 per unit of risk. If you would invest 1,558 in Miracll Chemicals Co on September 3, 2024 and sell it today you would earn a total of 305.00 from holding Miracll Chemicals Co or generate 19.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miracll Chemicals Co vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Miracll Chemicals |
| Penghua Shenzhen Energy |
Miracll Chemicals and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miracll Chemicals and Penghua Shenzhen
The main advantage of trading using opposite Miracll Chemicals and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miracll Chemicals position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Wanhua Chemical Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Rongsheng Petrochemical Co |
| Penghua Shenzhen vs. Kingclean Electric Co | Penghua Shenzhen vs. Hainan Haiqi Transportation | Penghua Shenzhen vs. Vohringer Home Technology | Penghua Shenzhen vs. Mengtian Home 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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