Correlation Between Chinese Universe and Penyao Environmental
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By analyzing existing cross correlation between Chinese Universe Publishing and Penyao Environmental Protection, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Penyao Environmental.
Diversification Opportunities for Chinese Universe and Penyao Environmental
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Penyao is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental and Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Penyao Environmental go up and down completely randomly.
Pair Corralation between Chinese Universe and Penyao Environmental
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 0.37 times more return on investment than Penyao Environmental. However, Chinese Universe Publishing is 2.67 times less risky than Penyao Environmental. It trades about 0.15 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.03 per unit of risk. If you would invest 1,228 in Chinese Universe Publishing on September 25, 2024 and sell it today you would earn a total of 76.00 from holding Chinese Universe Publishing or generate 6.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Chinese Universe Publishing vs. Penyao Environmental Protectio
Performance |
Timeline |
Chinese Universe Pub |
Penyao Environmental |
Chinese Universe and Penyao Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chinese Universe and Penyao Environmental
The main advantage of trading using opposite Chinese Universe and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.Chinese Universe vs. PetroChina Co Ltd | Chinese Universe vs. China Mobile Limited | Chinese Universe vs. CNOOC Limited | Chinese Universe vs. Ping An Insurance |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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