Correlation Between Pengxin International and Shantui Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pengxin International Mining and Shantui Construction Machinery, you can compare the effects of market volatilities on Pengxin International and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Shantui Construction.
Diversification Opportunities for Pengxin International and Shantui Construction
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pengxin and Shantui is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Pengxin International i.e., Pengxin International and Shantui Construction go up and down completely randomly.
Pair Corralation between Pengxin International and Shantui Construction
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Shantui Construction. In addition to that, Pengxin International is 1.43 times more volatile than Shantui Construction Machinery. It trades about -0.26 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.07 per unit of volatility. If you would invest 979.00 in Shantui Construction Machinery on October 25, 2024 and sell it today you would earn a total of 32.00 from holding Shantui Construction Machinery or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Shantui Construction Machinery
Performance |
| Timeline |
| Pengxin International |
| Shantui Construction |
Pengxin International and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Shantui Construction
The main advantage of trading using opposite Pengxin International and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical Co |
| Shantui Construction vs. Kweichow Moutai Co | Shantui Construction vs. Contemporary Amperex Technology | Shantui Construction vs. Beijing Roborock Technology | Shantui Construction vs. BYD Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |