Correlation Between Gansu Jiu and Pengxin International
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By analyzing existing cross correlation between Gansu Jiu Steel and Pengxin International Mining, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Pengxin International.
Diversification Opportunities for Gansu Jiu and Pengxin International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Pengxin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Pengxin International go up and down completely randomly.
Pair Corralation between Gansu Jiu and Pengxin International
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 2.89 times less risky than Pengxin International. The stock trades about -0.59 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 330.00 in Pengxin International Mining on October 15, 2024 and sell it today you would lose (35.00) from holding Pengxin International Mining or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Pengxin International Mining
Performance |
| Timeline |
| Gansu Jiu Steel |
| Pengxin International |
Gansu Jiu and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Pengxin International
The main advantage of trading using opposite Gansu Jiu and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. Kidswant Children Products | Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Juewei Food Co | Gansu Jiu vs. Anhui Transport Consulting |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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