Correlation Between Pingtan Marine and CenterPoint Energy
Can any of the company-specific risk be diversified away by investing in both Pingtan Marine and CenterPoint Energy 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 Pingtan Marine and CenterPoint Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pingtan Marine Enterprise and CenterPoint Energy, you can compare the effects of market volatilities on Pingtan Marine and CenterPoint Energy 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 Pingtan Marine with a short position of CenterPoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pingtan Marine and CenterPoint Energy.
Diversification Opportunities for Pingtan Marine and CenterPoint Energy
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pingtan and CenterPoint is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pingtan Marine Enterprise and CenterPoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CenterPoint Energy and Pingtan Marine 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 Pingtan Marine Enterprise are associated (or correlated) with CenterPoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CenterPoint Energy has no effect on the direction of Pingtan Marine i.e., Pingtan Marine and CenterPoint Energy go up and down completely randomly.
Pair Corralation between Pingtan Marine and CenterPoint Energy
If you would invest 3,024 in CenterPoint Energy on September 13, 2024 and sell it today you would earn a total of 117.00 from holding CenterPoint Energy or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Pingtan Marine Enterprise vs. CenterPoint Energy
Performance |
| Timeline |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CenterPoint Energy |
Pingtan Marine and CenterPoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pingtan Marine and CenterPoint Energy
The main advantage of trading using opposite Pingtan Marine and CenterPoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pingtan Marine position performs unexpectedly, CenterPoint Energy 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 CenterPoint Energy will offset losses from the drop in CenterPoint Energy's long position.| Pingtan Marine vs. CenterPoint Energy | Pingtan Marine vs. NETGEAR | Pingtan Marine vs. Allient | Pingtan Marine vs. Antero Midstream Partners |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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