Correlation Between Pengxin International and Yuan Longping
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By analyzing existing cross correlation between Pengxin International Mining and Yuan Longping High tech, you can compare the effects of market volatilities on Pengxin International and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Yuan Longping.
Diversification Opportunities for Pengxin International and Yuan Longping
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pengxin and Yuan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Pengxin International i.e., Pengxin International and Yuan Longping go up and down completely randomly.
Pair Corralation between Pengxin International and Yuan Longping
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Yuan Longping. In addition to that, Pengxin International is 1.44 times more volatile than Yuan Longping High tech. It trades about -0.04 of its total potential returns per unit of risk. Yuan Longping High tech is currently generating about 0.05 per unit of volatility. If you would invest 1,090 in Yuan Longping High tech on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Yuan Longping High tech or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Yuan Longping High tech
Performance |
| Timeline |
| Pengxin International |
| Yuan Longping High |
Pengxin International and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Yuan Longping
The main advantage of trading using opposite Pengxin International and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Hoshine Silicon Ind |
| Yuan Longping vs. Beijing Wantai Biological | Yuan Longping vs. Aluminum Corp of | Yuan Longping vs. COL Digital Publishing | Yuan Longping vs. Shaanxi Meineng Clean |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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