Correlation Between First Capital and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between First Capital Securities and Pengxin International Mining, you can compare the effects of market volatilities on First Capital 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 First Capital with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Capital and Pengxin International.
Diversification Opportunities for First Capital and Pengxin International
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Pengxin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding First Capital Securities and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and First Capital 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 First Capital Securities 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 First Capital i.e., First Capital and Pengxin International go up and down completely randomly.
Pair Corralation between First Capital and Pengxin International
Assuming the 90 days trading horizon First Capital Securities is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, First Capital Securities is 2.03 times less risky than Pengxin International. The stock trades about -0.44 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 330.00 in Pengxin International Mining on October 15, 2024 and sell it today you would lose (35.00) from holding Pengxin International Mining or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Capital Securities vs. Pengxin International Mining
Performance |
| Timeline |
| First Capital Securities |
| Pengxin International |
First Capital and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Capital and Pengxin International
The main advantage of trading using opposite First Capital and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital 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.| First Capital vs. Pengxin International Mining | First Capital vs. Shenzhen MYS Environmental | First Capital vs. Tibet Huayu Mining | First Capital vs. Aofu Environmental Technology |
| Pengxin International vs. Zhejiang Yinlun Machinery | Pengxin International vs. Qijing Machinery | Pengxin International vs. Anhui Tongguan Copper | Pengxin International vs. Hefei Metalforming Mach |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| 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 | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |