Correlation Between China Zheshang and Puyang Huicheng
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By analyzing existing cross correlation between China Zheshang Bank and Puyang Huicheng Electronic, you can compare the effects of market volatilities on China Zheshang and Puyang Huicheng 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 China Zheshang with a short position of Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Zheshang and Puyang Huicheng.
Diversification Opportunities for China Zheshang and Puyang Huicheng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Puyang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Zheshang Bank and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec and China Zheshang 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 China Zheshang Bank are associated (or correlated) with Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of China Zheshang i.e., China Zheshang and Puyang Huicheng go up and down completely randomly.
Pair Corralation between China Zheshang and Puyang Huicheng
Assuming the 90 days trading horizon China Zheshang Bank is expected to generate 0.44 times more return on investment than Puyang Huicheng. However, China Zheshang Bank is 2.28 times less risky than Puyang Huicheng. It trades about 0.16 of its potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about 0.01 per unit of risk. If you would invest 286.00 in China Zheshang Bank on September 13, 2024 and sell it today you would earn a total of 11.00 from holding China Zheshang Bank or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Zheshang Bank vs. Puyang Huicheng Electronic
Performance |
| Timeline |
| China Zheshang Bank |
| Puyang Huicheng Elec |
China Zheshang and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Zheshang and Puyang Huicheng
The main advantage of trading using opposite China Zheshang and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Zheshang position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| China Zheshang vs. Puyang Huicheng Electronic | China Zheshang vs. Shanghai Shuixing Home | China Zheshang vs. Nanxing Furniture Machinery | China Zheshang vs. Leaguer Shenzhen MicroElectronics |
| Puyang Huicheng vs. Zijin Mining Group | Puyang Huicheng vs. Wanhua Chemical Group | Puyang Huicheng vs. Baoshan Iron Steel | Puyang Huicheng 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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