Correlation Between Hubei Geoway and Penyao Environmental
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By analyzing existing cross correlation between Hubei Geoway Investment and Penyao Environmental Protection, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Penyao Environmental.
Diversification Opportunities for Hubei Geoway and Penyao Environmental
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Penyao is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Penyao Environmental go up and down completely randomly.
Pair Corralation between Hubei Geoway and Penyao Environmental
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to generate 1.35 times more return on investment than Penyao Environmental. However, Hubei Geoway is 1.35 times more volatile than Penyao Environmental Protection. It trades about 0.04 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.24 per unit of risk. If you would invest 144.00 in Hubei Geoway Investment on October 27, 2024 and sell it today you would earn a total of 2.00 from holding Hubei Geoway Investment or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Hubei Geoway Investment |
| Penyao Environmental |
Hubei Geoway and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Penyao Environmental
The main advantage of trading using opposite Hubei Geoway and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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