Correlation Between Hubei Geoway and Pengxin International
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By analyzing existing cross correlation between Hubei Geoway Investment and Pengxin International Mining, you can compare the effects of market volatilities on Hubei Geoway 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 Hubei Geoway with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Geoway and Pengxin International.
Diversification Opportunities for Hubei Geoway and Pengxin International
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hubei and Pengxin is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Geoway Investment and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Hubei Geoway 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 Hubei Geoway Investment 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 Hubei Geoway i.e., Hubei Geoway and Pengxin International go up and down completely randomly.
Pair Corralation between Hubei Geoway and Pengxin International
Assuming the 90 days trading horizon Hubei Geoway Investment is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Hubei Geoway Investment is 1.1 times less risky than Pengxin International. The stock trades about -0.01 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 331.00 in Pengxin International Mining on October 29, 2024 and sell it today you would lose (12.00) from holding Pengxin International Mining or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Geoway Investment vs. Pengxin International Mining
Performance |
| Timeline |
| Hubei Geoway Investment |
| Pengxin International |
Hubei Geoway and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Geoway and Pengxin International
The main advantage of trading using opposite Hubei Geoway and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Geoway 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.| Hubei Geoway vs. Ping An Insurance | Hubei Geoway vs. HeNan Splendor Science | Hubei Geoway vs. Bank of Suzhou | Hubei Geoway vs. Qilu Bank Co |
| Pengxin International vs. Anhui Guofeng Plastic | Pengxin International vs. Anhui Fuhuang Steel | Pengxin International vs. Guangdong Liantai Environmental | Pengxin International vs. Western Metal Materials |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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