Correlation Between Shenzhen and Pengxin International
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By analyzing existing cross correlation between Shenzhen AV Display Co and Pengxin International Mining, you can compare the effects of market volatilities on Shenzhen 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 with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Pengxin International.
Diversification Opportunities for Shenzhen and Pengxin International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Pengxin is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co 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 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 AV Display Co 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 i.e., Shenzhen and Pengxin International go up and down completely randomly.
Pair Corralation between Shenzhen and Pengxin International
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 0.87 times more return on investment than Pengxin International. However, Shenzhen AV Display Co is 1.15 times less risky than Pengxin International. It trades about -0.17 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.16 per unit of risk. If you would invest 3,510 in Shenzhen AV Display Co on October 30, 2024 and sell it today you would lose (390.00) from holding Shenzhen AV Display Co or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Pengxin International Mining
Performance |
| Timeline |
| Shenzhen AV Display |
| Pengxin International |
Shenzhen and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Pengxin International
The main advantage of trading using opposite Shenzhen and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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 vs. Chengdu Kanghua Biological | Shenzhen vs. Suzhou Novoprotein Scientific | Shenzhen vs. Aluminum Corp of | Shenzhen vs. COL Digital Publishing |
| Pengxin International vs. Beijing Kaiwen Education | Pengxin International vs. COL Digital Publishing | Pengxin International vs. Allied Machinery Co | Pengxin International vs. Qijing Machinery |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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