Correlation Between Pengxin International and Guangzhou Dongfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pengxin International Mining and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Pengxin International and Guangzhou Dongfang 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 Pengxin International with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Guangzhou Dongfang.
Diversification Opportunities for Pengxin International and Guangzhou Dongfang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Guangzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Pengxin International 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 Pengxin International Mining are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Pengxin International i.e., Pengxin International and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Pengxin International and Guangzhou Dongfang
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.64 times more return on investment than Guangzhou Dongfang. However, Pengxin International is 1.64 times more volatile than Guangzhou Dongfang Hotel. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.07 per unit of risk. If you would invest 316.00 in Pengxin International Mining on October 30, 2024 and sell it today you would lose (1.00) from holding Pengxin International Mining or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Pengxin International |
| Guangzhou Dongfang Hotel |
Pengxin International and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Guangzhou Dongfang
The main advantage of trading using opposite Pengxin International and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Pengxin International vs. Beijing Kaiwen Education | Pengxin International vs. COL Digital Publishing | Pengxin International vs. Allied Machinery Co | Pengxin International vs. Qijing Machinery |
| Guangzhou Dongfang vs. Shanghai Phichem Material | Guangzhou Dongfang vs. Guocheng Mining Co | Guangzhou Dongfang vs. Chongqing Sulian Plastic | Guangzhou Dongfang vs. Bosera CMSK Industrial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |