Correlation Between Pengxin International and Wintao Communications
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By analyzing existing cross correlation between Pengxin International Mining and Wintao Communications Co, you can compare the effects of market volatilities on Pengxin International and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Wintao Communications.
Diversification Opportunities for Pengxin International and Wintao Communications
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Wintao is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Pengxin International i.e., Pengxin International and Wintao Communications go up and down completely randomly.
Pair Corralation between Pengxin International and Wintao Communications
Assuming the 90 days trading horizon Pengxin International is expected to generate 1.15 times less return on investment than Wintao Communications. In addition to that, Pengxin International is 1.17 times more volatile than Wintao Communications Co. It trades about 0.07 of its total potential returns per unit of risk. Wintao Communications Co is currently generating about 0.1 per unit of volatility. If you would invest 2,410 in Wintao Communications Co on September 13, 2024 and sell it today you would earn a total of 127.00 from holding Wintao Communications Co or generate 5.27% 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. Wintao Communications Co
Performance |
| Timeline |
| Pengxin International |
| Wintao Communications |
Pengxin International and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Wintao Communications
The main advantage of trading using opposite Pengxin International and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' 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 |
| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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