Correlation Between Pengxin International and Guangdong Jingyi
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By analyzing existing cross correlation between Pengxin International Mining and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Pengxin International and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Guangdong Jingyi.
Diversification Opportunities for Pengxin International and Guangdong Jingyi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Pengxin International i.e., Pengxin International and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Pengxin International and Guangdong Jingyi
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 0.95 times more return on investment than Guangdong Jingyi. However, Pengxin International Mining is 1.06 times less risky than Guangdong Jingyi. It trades about 0.03 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.01 per unit of risk. If you would invest 304.00 in Pengxin International Mining on August 25, 2024 and sell it today you would earn a total of 41.00 from holding Pengxin International Mining or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Pengxin International |
| Guangdong Jingyi Metal |
Pengxin International and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Guangdong Jingyi
The main advantage of trading using opposite Pengxin International and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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