Correlation Between Pengxin International and Guangdong Brandmax
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By analyzing existing cross correlation between Pengxin International Mining and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Pengxin International and Guangdong Brandmax 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 Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Guangdong Brandmax.
Diversification Opportunities for Pengxin International and Guangdong Brandmax
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Guangdong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Pengxin International i.e., Pengxin International and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Pengxin International and Guangdong Brandmax
Assuming the 90 days trading horizon Pengxin International is expected to generate 11.61 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Pengxin International Mining is 1.19 times less risky than Guangdong Brandmax. It trades about 0.02 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 818.00 in Guangdong Brandmax Marketing on September 5, 2024 and sell it today you would earn a total of 165.00 from holding Guangdong Brandmax Marketing or generate 20.17% 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 Brandmax Marketing
Performance |
| Timeline |
| Pengxin International |
| Guangdong Brandmax |
Pengxin International and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Guangdong Brandmax
The main advantage of trading using opposite Pengxin International and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Guangdong Brandmax 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 Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Pengxin International vs. Gem Year Industrial Co | Pengxin International vs. ButOne Information Corp | Pengxin International vs. CITIC Metal Co | Pengxin International vs. Qinghaihuading Industrial Co |
| Guangdong Brandmax vs. Pengxin International Mining | Guangdong Brandmax vs. Guocheng Mining Co | Guangdong Brandmax vs. Liaoning Chengda Biotechnology | Guangdong Brandmax vs. Yili Chuanning Biotechnology |
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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