Correlation Between Suzhou Fushilai and Pengxin International
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By analyzing existing cross correlation between Suzhou Fushilai Pharmaceutical and Pengxin International Mining, you can compare the effects of market volatilities on Suzhou Fushilai 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 Suzhou Fushilai with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Fushilai and Pengxin International.
Diversification Opportunities for Suzhou Fushilai and Pengxin International
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Pengxin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Fushilai Pharmaceutical and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Suzhou Fushilai 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 Suzhou Fushilai Pharmaceutical 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 Suzhou Fushilai i.e., Suzhou Fushilai and Pengxin International go up and down completely randomly.
Pair Corralation between Suzhou Fushilai and Pengxin International
Assuming the 90 days trading horizon Suzhou Fushilai Pharmaceutical is expected to under-perform the Pengxin International. In addition to that, Suzhou Fushilai is 1.13 times more volatile than Pengxin International Mining. It trades about 0.0 of its total potential returns per unit of risk. Pengxin International Mining is currently generating about 0.03 per unit of volatility. If you would invest 298.00 in Pengxin International Mining on September 14, 2024 and sell it today you would earn a total of 49.00 from holding Pengxin International Mining or generate 16.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Suzhou Fushilai Pharmaceutical vs. Pengxin International Mining
Performance |
| Timeline |
| Suzhou Fushilai Phar |
| Pengxin International |
Suzhou Fushilai and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Fushilai and Pengxin International
The main advantage of trading using opposite Suzhou Fushilai and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Fushilai 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.| Suzhou Fushilai vs. Fujian Newland Computer | Suzhou Fushilai vs. Guangzhou Haige Communications | Suzhou Fushilai vs. Jinling Hotel Corp | Suzhou Fushilai vs. Tongyu Communication |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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