Correlation Between ShenZhen Yitoa and Pengxin International
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By analyzing existing cross correlation between ShenZhen Yitoa Intelligent and Pengxin International Mining, you can compare the effects of market volatilities on ShenZhen Yitoa 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 ShenZhen Yitoa with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ShenZhen Yitoa and Pengxin International.
Diversification Opportunities for ShenZhen Yitoa and Pengxin International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ShenZhen and Pengxin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding ShenZhen Yitoa Intelligent and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and ShenZhen Yitoa 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 ShenZhen Yitoa Intelligent 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 ShenZhen Yitoa i.e., ShenZhen Yitoa and Pengxin International go up and down completely randomly.
Pair Corralation between ShenZhen Yitoa and Pengxin International
Assuming the 90 days trading horizon ShenZhen Yitoa Intelligent is expected to generate 1.32 times more return on investment than Pengxin International. However, ShenZhen Yitoa is 1.32 times more volatile than Pengxin International Mining. It trades about 0.09 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.02 per unit of risk. If you would invest 741.00 in ShenZhen Yitoa Intelligent on September 1, 2024 and sell it today you would earn a total of 50.00 from holding ShenZhen Yitoa Intelligent or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ShenZhen Yitoa Intelligent vs. Pengxin International Mining
Performance |
| Timeline |
| ShenZhen Yitoa Intel |
| Pengxin International |
ShenZhen Yitoa and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ShenZhen Yitoa and Pengxin International
The main advantage of trading using opposite ShenZhen Yitoa and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ShenZhen Yitoa 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.| ShenZhen Yitoa vs. Guocheng Mining Co | ShenZhen Yitoa vs. Anji Foodstuff Co | ShenZhen Yitoa vs. Jinhui Mining Co | ShenZhen Yitoa vs. Guangdong Silvere Sci |
| Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining | 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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