Correlation Between Pengxin International and Jiangxi Lianchuang
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By analyzing existing cross correlation between Pengxin International Mining and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Pengxin International and Jiangxi Lianchuang 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 Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Jiangxi Lianchuang.
Diversification Opportunities for Pengxin International and Jiangxi Lianchuang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Jiangxi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto 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 Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Pengxin International i.e., Pengxin International and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Pengxin International and Jiangxi Lianchuang
Assuming the 90 days trading horizon Pengxin International is expected to generate 1.65 times less return on investment than Jiangxi Lianchuang. In addition to that, Pengxin International is 1.11 times more volatile than Jiangxi Lianchuang Opto electronic. It trades about 0.11 of its total potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.2 per unit of volatility. If you would invest 4,412 in Jiangxi Lianchuang Opto electronic on November 6, 2024 and sell it today you would earn a total of 396.00 from holding Jiangxi Lianchuang Opto electronic or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Pengxin International |
| Jiangxi Lianchuang Opto |
Pengxin International and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Jiangxi Lianchuang
The main advantage of trading using opposite Pengxin International and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang'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 |
| Jiangxi Lianchuang vs. Qijing Machinery | Jiangxi Lianchuang vs. Linzhou Heavy Machinery | Jiangxi Lianchuang vs. Shenzhen Zhongzhuang Construction | Jiangxi Lianchuang vs. Allied Machinery 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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