Correlation Between Xiamen Jihong and Pengxin International
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By analyzing existing cross correlation between Xiamen Jihong Package and Pengxin International Mining, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Pengxin International.
Diversification Opportunities for Xiamen Jihong and Pengxin International
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xiamen and Pengxin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Pengxin International go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Pengxin International
Assuming the 90 days trading horizon Xiamen Jihong is expected to generate 1.11 times less return on investment than Pengxin International. But when comparing it to its historical volatility, Xiamen Jihong Package is 1.12 times less risky than Pengxin International. It trades about 0.03 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 315.00 in Pengxin International Mining on October 25, 2024 and sell it today you would earn a total of 7.00 from holding Pengxin International Mining or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Pengxin International Mining
Performance |
| Timeline |
| Xiamen Jihong Package |
| Pengxin International |
Xiamen Jihong and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Pengxin International
The main advantage of trading using opposite Xiamen Jihong and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Rongsheng Petrochemical Co |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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