Correlation Between Fujian Nanwang and Penyao Environmental
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By analyzing existing cross correlation between Fujian Nanwang Environment and Penyao Environmental Protection, you can compare the effects of market volatilities on Fujian Nanwang and Penyao 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 Fujian Nanwang with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Penyao Environmental.
Diversification Opportunities for Fujian Nanwang and Penyao Environmental
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Penyao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Fujian Nanwang 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 Fujian Nanwang Environment are associated (or correlated) with Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Penyao Environmental go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Penyao Environmental
Assuming the 90 days trading horizon Fujian Nanwang is expected to generate 6.08 times less return on investment than Penyao Environmental. But when comparing it to its historical volatility, Fujian Nanwang Environment is 2.92 times less risky than Penyao Environmental. It trades about 0.12 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 498.00 in Penyao Environmental Protection on September 1, 2024 and sell it today you would earn a total of 137.00 from holding Penyao Environmental Protection or generate 27.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Penyao Environmental |
Fujian Nanwang and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Penyao Environmental
The main advantage of trading using opposite Fujian Nanwang and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Penyao 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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