Correlation Between Pengxin International and Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pengxin International Mining and Shenzhen AV Display Co, you can compare the effects of market volatilities on Pengxin International and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Shenzhen.
Diversification Opportunities for Pengxin International and Shenzhen
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pengxin and Shenzhen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Pengxin International i.e., Pengxin International and Shenzhen go up and down completely randomly.
Pair Corralation between Pengxin International and Shenzhen
Assuming the 90 days trading horizon Pengxin International is expected to generate 2.5 times less return on investment than Shenzhen. But when comparing it to its historical volatility, Pengxin International Mining is 1.25 times less risky than Shenzhen. It trades about 0.01 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,924 in Shenzhen AV Display Co on September 3, 2024 and sell it today you would earn a total of 503.00 from holding Shenzhen AV Display Co or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Pengxin International |
| Shenzhen AV Display |
Pengxin International and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Shenzhen
The main advantage of trading using opposite Pengxin International and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical Co | Pengxin International vs. Hoshine Silicon Ind |
| Shenzhen vs. Beijing SPC Environment | Shenzhen vs. Sinocat Environmental Technology | Shenzhen vs. Pengxin International Mining | Shenzhen vs. Minmetals Capital 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |