Correlation Between INKON Life and Pengxin International
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By analyzing existing cross correlation between INKON Life Technology and Pengxin International Mining, you can compare the effects of market volatilities on INKON Life 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 INKON Life with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Pengxin International.
Diversification Opportunities for INKON Life and Pengxin International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INKON and Pengxin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life 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 INKON Life 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 INKON Life 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 INKON Life i.e., INKON Life and Pengxin International go up and down completely randomly.
Pair Corralation between INKON Life and Pengxin International
Assuming the 90 days trading horizon INKON Life Technology is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, INKON Life Technology is 1.56 times less risky than Pengxin International. The stock trades about -0.17 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 333.00 in Pengxin International Mining on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Pengxin International Mining or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INKON Life Technology vs. Pengxin International Mining
Performance |
| Timeline |
| INKON Life Technology |
| Pengxin International |
INKON Life and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INKON Life and Pengxin International
The main advantage of trading using opposite INKON Life and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life 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.| INKON Life vs. Industrial and Commercial | INKON Life vs. China Construction Bank | INKON Life vs. Agricultural Bank of | INKON Life vs. Bank of China |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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