Correlation Between Jiangxi Selon and Pengxin International
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Pengxin International Mining, you can compare the effects of market volatilities on Jiangxi Selon 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 Jiangxi Selon with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Pengxin International.
Diversification Opportunities for Jiangxi Selon and Pengxin International
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Pengxin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Jiangxi Selon 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 Jiangxi Selon Industrial 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 Jiangxi Selon i.e., Jiangxi Selon and Pengxin International go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Pengxin International
Assuming the 90 days trading horizon Jiangxi Selon Industrial is expected to generate 0.72 times more return on investment than Pengxin International. However, Jiangxi Selon Industrial is 1.39 times less risky than Pengxin International. It trades about 0.32 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 685.00 in Jiangxi Selon Industrial on September 13, 2024 and sell it today you would earn a total of 114.00 from holding Jiangxi Selon Industrial or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Selon Industrial vs. Pengxin International Mining
Performance |
| Timeline |
| Jiangxi Selon Industrial |
| Pengxin International |
Jiangxi Selon and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Selon and Pengxin International
The main advantage of trading using opposite Jiangxi Selon and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon 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.| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Shandong Gold Mining |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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