Correlation Between Pengxin International and Guangzhou KingTeller
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pengxin International Mining and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Pengxin International and Guangzhou KingTeller 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 KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Guangzhou KingTeller.
Diversification Opportunities for Pengxin International and Guangzhou KingTeller
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pengxin and Guangzhou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Pengxin International i.e., Pengxin International and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Pengxin International and Guangzhou KingTeller
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.15 times more return on investment than Guangzhou KingTeller. However, Pengxin International is 1.15 times more volatile than Guangzhou KingTeller Technology. It trades about -0.08 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.28 per unit of risk. If you would invest 330.00 in Pengxin International Mining on October 15, 2024 and sell it today you would lose (35.00) from holding Pengxin International Mining or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Pengxin International |
| Guangzhou KingTeller |
Pengxin International and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Guangzhou KingTeller
The main advantage of trading using opposite Pengxin International and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Guangzhou KingTeller 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 KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Pengxin International vs. Zhejiang Yinlun Machinery | Pengxin International vs. Qijing Machinery | Pengxin International vs. Anhui Tongguan Copper | Pengxin International vs. Hefei Metalforming Mach |
| Guangzhou KingTeller vs. ZYF Lopsking Aluminum | Guangzhou KingTeller vs. Telling Telecommunication Holding | Guangzhou KingTeller vs. Quectel Wireless Solutions | Guangzhou KingTeller 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |