Correlation Between Pengxin International and Guangzhou Seagull
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By analyzing existing cross correlation between Pengxin International Mining and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Pengxin International and Guangzhou Seagull 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 Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Guangzhou Seagull.
Diversification Opportunities for Pengxin International and Guangzhou Seagull
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pengxin and Guangzhou is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Pengxin International i.e., Pengxin International and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Pengxin International and Guangzhou Seagull
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Guangzhou Seagull. In addition to that, Pengxin International is 1.1 times more volatile than Guangzhou Seagull Kitchen. It trades about -0.16 of its total potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.03 per unit of volatility. If you would invest 293.00 in Guangzhou Seagull Kitchen on October 29, 2024 and sell it today you would lose (8.00) from holding Guangzhou Seagull Kitchen or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Pengxin International Mining vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Pengxin International |
| Guangzhou Seagull Kitchen |
Pengxin International and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Guangzhou Seagull
The main advantage of trading using opposite Pengxin International and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Guangzhou Seagull 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 Seagull will offset losses from the drop in Guangzhou Seagull'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 Seagull vs. Fiberhome Telecommunication Technologies | Guangzhou Seagull vs. Dhc Software Co | Guangzhou Seagull vs. Kuang Chi Technologies | Guangzhou Seagull vs. Wuhan Yangtze Communication |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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