Correlation Between Pengxin International and Elite Color
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By analyzing existing cross correlation between Pengxin International Mining and Elite Color Environmental, you can compare the effects of market volatilities on Pengxin International and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Elite Color.
Diversification Opportunities for Pengxin International and Elite Color
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Elite is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Pengxin International i.e., Pengxin International and Elite Color go up and down completely randomly.
Pair Corralation between Pengxin International and Elite Color
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.04 times more return on investment than Elite Color. However, Pengxin International is 1.04 times more volatile than Elite Color Environmental. It trades about 0.16 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.16 per unit of risk. If you would invest 293.00 in Pengxin International Mining on September 13, 2024 and sell it today you would earn a total of 55.00 from holding Pengxin International Mining or generate 18.77% 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. Elite Color Environmental
Performance |
| Timeline |
| Pengxin International |
| Elite Color Environmental |
Pengxin International and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Elite Color
The main advantage of trading using opposite Pengxin International and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color'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 |
| Elite Color vs. Anhui Jianghuai Automobile | Elite Color vs. Songz Automobile Air | Elite Color vs. Sinomach Automobile Co | Elite Color vs. Pengxin International Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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