Correlation Between Industrial and Penghua Shenzhen
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By analyzing existing cross correlation between Industrial and Commercial and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Penghua Shenzhen.
Diversification Opportunities for Industrial and Penghua Shenzhen
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Penghua is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Industrial and Penghua Shenzhen
Assuming the 90 days trading horizon Industrial is expected to generate 1.42 times less return on investment than Penghua Shenzhen. In addition to that, Industrial is 1.76 times more volatile than Penghua Shenzhen Energy. It trades about 0.07 of its total potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.19 per unit of volatility. If you would invest 588.00 in Penghua Shenzhen Energy on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Penghua Shenzhen Energy or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Industrial and Commercial |
| Penghua Shenzhen Energy |
Industrial and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Penghua Shenzhen
The main advantage of trading using opposite Industrial and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Allwin Telecommunication Co | Industrial vs. SUNSEA Telecommunications Co | Industrial vs. Guangzhou Haige Communications | Industrial vs. Nanjing Putian Telecommunications |
| Penghua Shenzhen vs. Industrial and Commercial | Penghua Shenzhen vs. Kweichow Moutai Co | Penghua Shenzhen vs. Agricultural Bank of | Penghua Shenzhen 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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