Correlation Between Pengxin International and Jiugui Liquor
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By analyzing existing cross correlation between Pengxin International Mining and Jiugui Liquor Co, you can compare the effects of market volatilities on Pengxin International and Jiugui Liquor 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 Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Jiugui Liquor.
Diversification Opportunities for Pengxin International and Jiugui Liquor
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Jiugui is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor 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 Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Pengxin International i.e., Pengxin International and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Pengxin International and Jiugui Liquor
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.17 times more return on investment than Jiugui Liquor. However, Pengxin International is 1.17 times more volatile than Jiugui Liquor Co. It trades about 0.01 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.07 per unit of risk. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Jiugui Liquor Co
Performance |
| Timeline |
| Pengxin International |
| Jiugui Liquor |
Pengxin International and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Jiugui Liquor
The main advantage of trading using opposite Pengxin International and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Pengxin International vs. Anhui Guofeng Plastic | Pengxin International vs. Anhui Fuhuang Steel | Pengxin International vs. Guangdong Liantai Environmental | Pengxin International vs. Western Metal Materials |
| Jiugui Liquor vs. Chengdu Kanghua Biological | Jiugui Liquor vs. Beijing Wantai Biological | Jiugui Liquor vs. Suzhou Novoprotein Scientific | Jiugui Liquor vs. Aluminum Corp of |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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