Correlation Between HeNan Splendor and Pengxin International
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By analyzing existing cross correlation between HeNan Splendor Science and Pengxin International Mining, you can compare the effects of market volatilities on HeNan Splendor and Pengxin International 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 HeNan Splendor with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Pengxin International.
Diversification Opportunities for HeNan Splendor and Pengxin International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HeNan and Pengxin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Pengxin International go up and down completely randomly.
Pair Corralation between HeNan Splendor and Pengxin International
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.65 times more return on investment than Pengxin International. However, HeNan Splendor Science is 1.55 times less risky than Pengxin International. It trades about -0.05 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.08 per unit of risk. If you would invest 978.00 in HeNan Splendor Science on October 22, 2024 and sell it today you would lose (38.00) from holding HeNan Splendor Science or give up 3.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Pengxin International Mining
Performance |
| Timeline |
| HeNan Splendor Science |
| Pengxin International |
HeNan Splendor and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Pengxin International
The main advantage of trading using opposite HeNan Splendor and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| HeNan Splendor vs. Chengdu Xingrong Investment | HeNan Splendor vs. Tieling Newcity Investment | HeNan Splendor vs. Jointo Energy Investment | HeNan Splendor vs. Zoje Resources Investment |
| Pengxin International vs. Xiangyu Medical Co | Pengxin International vs. Kontour Medical Technology | Pengxin International vs. Shenzhen Zqgame | Pengxin International vs. MayAir Technology Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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