Correlation Between Chenzhou Jingui and Pengxin International
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Pengxin International Mining, you can compare the effects of market volatilities on Chenzhou Jingui 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 Chenzhou Jingui with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Pengxin International.
Diversification Opportunities for Chenzhou Jingui and Pengxin International
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chenzhou and Pengxin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Chenzhou Jingui 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 Chenzhou Jingui Silver 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 Chenzhou Jingui i.e., Chenzhou Jingui and Pengxin International go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Pengxin International
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Chenzhou Jingui Silver is 2.09 times less risky than Pengxin International. The stock trades about -0.25 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Pengxin International Mining on October 10, 2024 and sell it today you would lose (37.00) from holding Pengxin International Mining or give up 10.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Pengxin International Mining
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Pengxin International |
Chenzhou Jingui and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Pengxin International
The main advantage of trading using opposite Chenzhou Jingui and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui 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.| Chenzhou Jingui vs. Uroica Mining Safety | Chenzhou Jingui vs. Guocheng Mining Co | Chenzhou Jingui vs. Anhui Tongguan Copper | Chenzhou Jingui vs. Longmaster Information Tech |
| Pengxin International vs. Dalian Thermal Power | Pengxin International vs. Ligao Foods CoLtd | Pengxin International vs. Xiamen Jihong Package | Pengxin International vs. Gan Yuan Foods |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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