Correlation Between Pengxin International and Sinomach General
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By analyzing existing cross correlation between Pengxin International Mining and Sinomach General Machinery, you can compare the effects of market volatilities on Pengxin International and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Sinomach General.
Diversification Opportunities for Pengxin International and Sinomach General
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pengxin and Sinomach is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Pengxin International i.e., Pengxin International and Sinomach General go up and down completely randomly.
Pair Corralation between Pengxin International and Sinomach General
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Sinomach General. In addition to that, Pengxin International is 1.54 times more volatile than Sinomach General Machinery. It trades about -0.06 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.04 per unit of volatility. If you would invest 1,495 in Sinomach General Machinery on November 3, 2024 and sell it today you would earn a total of 16.00 from holding Sinomach General Machinery or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Sinomach General Machinery
Performance |
| Timeline |
| Pengxin International |
| Sinomach General Mac |
Pengxin International and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Sinomach General
The main advantage of trading using opposite Pengxin International and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Pengxin International vs. Bangyan Technology Co | Pengxin International vs. Shandong Longquan Pipeline | Pengxin International vs. Qingdao Choho Industrial | Pengxin International vs. Hubei Forbon Technology |
| Sinomach General vs. Anhui Tongguan Copper | Sinomach General vs. Shanghai Yanpu Metal | Sinomach General vs. XiAn Dagang Road | Sinomach General vs. Eastern Air Logistics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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