Correlation Between Pembina Pipeline and Yangzijiang Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and Yangzijiang Shipbuilding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pembina Pipeline and Yangzijiang Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Yangzijiang Shipbuilding, you can compare the effects of market volatilities on Pembina Pipeline and Yangzijiang Shipbuilding 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 Pembina Pipeline with a short position of Yangzijiang Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Yangzijiang Shipbuilding.
Diversification Opportunities for Pembina Pipeline and Yangzijiang Shipbuilding
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pembina and Yangzijiang is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Yangzijiang Shipbuilding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangzijiang Shipbuilding and Pembina Pipeline 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 Pembina Pipeline Corp are associated (or correlated) with Yangzijiang Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangzijiang Shipbuilding has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and Yangzijiang Shipbuilding go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Yangzijiang Shipbuilding
Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 0.34 times more return on investment than Yangzijiang Shipbuilding. However, Pembina Pipeline Corp is 2.97 times less risky than Yangzijiang Shipbuilding. It trades about -0.07 of its potential returns per unit of risk. Yangzijiang Shipbuilding is currently generating about -0.11 per unit of risk. If you would invest 3,501 in Pembina Pipeline Corp on November 29, 2024 and sell it today you would lose (71.00) from holding Pembina Pipeline Corp or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Yangzijiang Shipbuilding
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Yangzijiang Shipbuilding |
Pembina Pipeline and Yangzijiang Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Yangzijiang Shipbuilding
The main advantage of trading using opposite Pembina Pipeline and Yangzijiang Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, Yangzijiang Shipbuilding 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 Yangzijiang Shipbuilding will offset losses from the drop in Yangzijiang Shipbuilding's long position.| Pembina Pipeline vs. CSSC Offshore Marine | Pembina Pipeline vs. VARIOUS EATERIES LS | Pembina Pipeline vs. BJs Restaurants | Pembina Pipeline vs. DISTRICT METALS |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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