Correlation Between Pengxin International and Hubei Geoway
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By analyzing existing cross correlation between Pengxin International Mining and Hubei Geoway Investment, you can compare the effects of market volatilities on Pengxin International and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Hubei Geoway.
Diversification Opportunities for Pengxin International and Hubei Geoway
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Hubei is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Pengxin International i.e., Pengxin International and Hubei Geoway go up and down completely randomly.
Pair Corralation between Pengxin International and Hubei Geoway
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.08 times more return on investment than Hubei Geoway. However, Pengxin International is 1.08 times more volatile than Hubei Geoway Investment. It trades about 0.02 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.0 per unit of risk. If you would invest 305.00 in Pengxin International Mining on September 21, 2024 and sell it today you would earn a total of 40.00 from holding Pengxin International Mining or generate 13.11% 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. Hubei Geoway Investment
Performance |
| Timeline |
| Pengxin International |
| Hubei Geoway Investment |
Pengxin International and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Hubei Geoway
The main advantage of trading using opposite Pengxin International and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway'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 |
| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Wanhua Chemical Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Shandong Gold Mining |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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