Correlation Between Anhui Tongguan and Pengxin International
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By analyzing existing cross correlation between Anhui Tongguan Copper and Pengxin International Mining, you can compare the effects of market volatilities on Anhui Tongguan 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 Anhui Tongguan with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Pengxin International.
Diversification Opportunities for Anhui Tongguan and Pengxin International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Pengxin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Anhui Tongguan 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 Anhui Tongguan Copper 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 Anhui Tongguan i.e., Anhui Tongguan and Pengxin International go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Pengxin International
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to generate 0.74 times more return on investment than Pengxin International. However, Anhui Tongguan Copper is 1.36 times less risky than Pengxin International. It trades about -0.03 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.09 per unit of risk. If you would invest 1,099 in Anhui Tongguan Copper on October 14, 2024 and sell it today you would lose (41.00) from holding Anhui Tongguan Copper or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Pengxin International Mining
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Pengxin International |
Anhui Tongguan and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Pengxin International
The main advantage of trading using opposite Anhui Tongguan and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan 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.| Anhui Tongguan vs. Semiconductor Manufacturing Intl | Anhui Tongguan vs. Puya Semiconductor Shanghai | Anhui Tongguan vs. Yuanjie Semiconductor Technology | Anhui Tongguan vs. Qtone Education Group |
| Pengxin International vs. Zhejiang Yinlun Machinery | Pengxin International vs. Qijing Machinery | Pengxin International vs. Anhui Tongguan Copper | Pengxin International vs. Hefei Metalforming Mach |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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