Correlation Between Piotech and China Everbright
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By analyzing existing cross correlation between Piotech Inc A and China Everbright Bank, you can compare the effects of market volatilities on Piotech and China Everbright 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 Piotech with a short position of China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and China Everbright.
Diversification Opportunities for Piotech and China Everbright
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piotech and China is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank and Piotech 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 Piotech Inc A are associated (or correlated) with China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Piotech i.e., Piotech and China Everbright go up and down completely randomly.
Pair Corralation between Piotech and China Everbright
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the China Everbright. In addition to that, Piotech is 1.14 times more volatile than China Everbright Bank. It trades about -0.05 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.14 per unit of volatility. If you would invest 372.00 in China Everbright Bank on November 5, 2024 and sell it today you would earn a total of 15.00 from holding China Everbright Bank or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. China Everbright Bank
Performance |
| Timeline |
| Piotech Inc A |
| China Everbright Bank |
Piotech and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and China Everbright
The main advantage of trading using opposite Piotech and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Piotech vs. Guosheng Financial Holding | Piotech vs. Panda Financial Holding | Piotech vs. Montage Technology Co | Piotech vs. 360 Security Technology |
| China Everbright vs. Yan Tai Shuang | China Everbright vs. Dazhong Transportation Group | China Everbright vs. Hubeiyichang Transportation Group | China Everbright vs. Gan Yuan Foods |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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