Correlation Between Shandong Mining and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Mining Machinery and Pengxin International Mining, you can compare the effects of market volatilities on Shandong Mining 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 Shandong Mining with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Mining and Pengxin International.
Diversification Opportunities for Shandong Mining and Pengxin International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Pengxin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Mining Machinery and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Shandong Mining 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 Shandong Mining Machinery 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 Shandong Mining i.e., Shandong Mining and Pengxin International go up and down completely randomly.
Pair Corralation between Shandong Mining and Pengxin International
Assuming the 90 days trading horizon Shandong Mining is expected to generate 1.49 times less return on investment than Pengxin International. But when comparing it to its historical volatility, Shandong Mining Machinery is 1.07 times less risky than Pengxin International. It trades about 0.02 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Pengxin International Mining on August 25, 2024 and sell it today you would earn a total of 41.00 from holding Pengxin International Mining or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Mining Machinery vs. Pengxin International Mining
Performance |
| Timeline |
| Shandong Mining Machinery |
| Pengxin International |
Shandong Mining and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Mining and Pengxin International
The main advantage of trading using opposite Shandong Mining and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Mining 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.| Shandong Mining vs. Guizhou BroadcastingTV Info | Shandong Mining vs. Shandong Hi Speed RoadBridge | Shandong Mining vs. Anhui Deli Household | Shandong Mining vs. Hainan Haiqi Transportation |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |