Correlation Between Aofu Environmental and Penyao Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and Penyao Environmental Protection, you can compare the effects of market volatilities on Aofu Environmental 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 Aofu Environmental with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and Penyao Environmental.
Diversification Opportunities for Aofu Environmental and Penyao Environmental
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aofu and Penyao is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Aofu Environmental 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 Aofu Environmental Technology 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 Aofu Environmental i.e., Aofu Environmental and Penyao Environmental go up and down completely randomly.
Pair Corralation between Aofu Environmental and Penyao Environmental
Assuming the 90 days trading horizon Aofu Environmental is expected to generate 1.61 times less return on investment than Penyao Environmental. In addition to that, Aofu Environmental is 1.02 times more volatile than Penyao Environmental Protection. It trades about 0.05 of its total potential returns per unit of risk. Penyao Environmental Protection is currently generating about 0.08 per unit of volatility. If you would invest 440.00 in Penyao Environmental Protection on September 27, 2024 and sell it today you would earn a total of 128.00 from holding Penyao Environmental Protection or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Aofu Environmental |
| Penyao Environmental |
Aofu Environmental and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and Penyao Environmental
The main advantage of trading using opposite Aofu Environmental and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental 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.| Aofu Environmental vs. Hunan TV Broadcast | Aofu Environmental vs. Ningxia Xiaoming Agriculture | Aofu Environmental vs. Anhui Transport Consulting | Aofu Environmental vs. Chengdu Xinzhu RoadBridge |
| Penyao Environmental vs. Shenzhen MYS Environmental | Penyao Environmental vs. AVIC Fund Management | Penyao Environmental vs. Shenzhen Bingchuan Network | Penyao Environmental vs. Penghua Shenzhen Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |