Correlation Between Dongguan Chitwing and Pengxin International
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Pengxin International Mining, you can compare the effects of market volatilities on Dongguan Chitwing 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 Dongguan Chitwing with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Pengxin International.
Diversification Opportunities for Dongguan Chitwing and Pengxin International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Pengxin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Dongguan Chitwing 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 Dongguan Chitwing Technology 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 Dongguan Chitwing i.e., Dongguan Chitwing and Pengxin International go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Pengxin International
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to generate 1.55 times more return on investment than Pengxin International. However, Dongguan Chitwing is 1.55 times more volatile than Pengxin International Mining. It trades about 0.06 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.06 per unit of risk. If you would invest 2,337 in Dongguan Chitwing Technology on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Dongguan Chitwing Technology or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Pengxin International Mining
Performance |
| Timeline |
| Dongguan Chitwing |
| Pengxin International |
Dongguan Chitwing and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Pengxin International
The main advantage of trading using opposite Dongguan Chitwing and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing 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.| Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. Bank of China | Dongguan Chitwing vs. PetroChina Co Ltd |
| Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Shandong Gold Mining | Pengxin International vs. Rongsheng Petrochemical Co | Pengxin International vs. Inner Mongolia BaoTou |
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 CEOs Directory module to screen CEOs from public companies around the world.
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