Correlation Between Henan Lantian and Penghua Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Lantian Gas and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Henan Lantian 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 Henan Lantian with a short position of Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and Penghua Shenzhen.
Diversification Opportunities for Henan Lantian and Penghua Shenzhen
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Henan and Penghua is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas 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 Henan Lantian 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 Henan Lantian Gas 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 Henan Lantian i.e., Henan Lantian and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Henan Lantian and Penghua Shenzhen
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the Penghua Shenzhen. In addition to that, Henan Lantian is 3.34 times more volatile than Penghua Shenzhen Energy. It trades about -0.08 of its total potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.02 per unit of volatility. If you would invest 606.00 in Penghua Shenzhen Energy on October 22, 2024 and sell it today you would earn a total of 8.00 from holding Penghua Shenzhen Energy or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Henan Lantian Gas |
| Penghua Shenzhen Energy |
Henan Lantian and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and Penghua Shenzhen
The main advantage of trading using opposite Henan Lantian and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian 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.| Henan Lantian vs. Sunny Loan Top | Henan Lantian vs. Chison Medical Technologies | Henan Lantian vs. Innovative Medical Management | Henan Lantian vs. Shenzhen Glory Medical |
| Penghua Shenzhen vs. Xizi Clean Energy | Penghua Shenzhen vs. Shenzhen Noposion Agrochemicals | Penghua Shenzhen vs. Chongqing Changan Automobile | Penghua Shenzhen vs. Hengli Petrochemical Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |