Correlation Between Changjiang Jinggong and Penyao Environmental
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Penyao Environmental Protection, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Penyao Environmental.
Diversification Opportunities for Changjiang Jinggong and Penyao Environmental
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changjiang and Penyao is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Penyao Environmental go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Penyao Environmental
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 0.49 times more return on investment than Penyao Environmental. However, Changjiang Jinggong Steel is 2.04 times less risky than Penyao Environmental. It trades about -0.04 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.29 per unit of risk. If you would invest 297.00 in Changjiang Jinggong Steel on November 2, 2024 and sell it today you would lose (3.00) from holding Changjiang Jinggong Steel or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Penyao Environmental |
Changjiang Jinggong and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Penyao Environmental
The main advantage of trading using opposite Changjiang Jinggong and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Industrial and Commercial | Changjiang Jinggong vs. Kweichow Moutai Co | Changjiang Jinggong vs. Agricultural Bank of | Changjiang Jinggong vs. China Mobile Limited |
| Penyao Environmental vs. Industrial and Commercial | Penyao Environmental vs. Kweichow Moutai Co | Penyao Environmental vs. Agricultural Bank of | Penyao Environmental vs. China Mobile Limited |
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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