Correlation Between Gan Yuan and Pengxin International
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By analyzing existing cross correlation between Gan Yuan Foods and Pengxin International Mining, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Pengxin International.
Diversification Opportunities for Gan Yuan and Pengxin International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gan and Pengxin is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Pengxin International go up and down completely randomly.
Pair Corralation between Gan Yuan and Pengxin International
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.66 times more return on investment than Pengxin International. However, Gan Yuan Foods is 1.52 times less risky than Pengxin International. It trades about 0.15 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.03 per unit of risk. If you would invest 7,020 in Gan Yuan Foods on October 25, 2024 and sell it today you would earn a total of 1,745 from holding Gan Yuan Foods or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Pengxin International Mining
Performance |
| Timeline |
| Gan Yuan Foods |
| Pengxin International |
Gan Yuan and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Pengxin International
The main advantage of trading using opposite Gan Yuan and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. Agricultural Bank of | Gan Yuan vs. Postal Savings Bank | Gan Yuan vs. Bank of Communications | Gan Yuan vs. China Merchants Bank |
| 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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