Correlation Between Pengxin International and Keda Clean
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By analyzing existing cross correlation between Pengxin International Mining and Keda Clean Energy, you can compare the effects of market volatilities on Pengxin International and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Keda Clean.
Diversification Opportunities for Pengxin International and Keda Clean
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Keda is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Pengxin International i.e., Pengxin International and Keda Clean go up and down completely randomly.
Pair Corralation between Pengxin International and Keda Clean
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.23 times more return on investment than Keda Clean. However, Pengxin International is 1.23 times more volatile than Keda Clean Energy. It trades about 0.04 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.04 per unit of risk. If you would invest 306.00 in Pengxin International Mining on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Pengxin International Mining or generate 7.84% 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. Keda Clean Energy
Performance |
| Timeline |
| Pengxin International |
| Keda Clean Energy |
Pengxin International and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Keda Clean
The main advantage of trading using opposite Pengxin International and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Shandong Gold Mining | Pengxin International vs. Rongsheng Petrochemical Co | Pengxin International vs. Inner Mongolia BaoTou |
| Keda Clean vs. Biwin Storage Technology | Keda Clean vs. PetroChina Co Ltd | Keda Clean vs. Industrial and Commercial | Keda Clean vs. China Construction Bank |
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 Stocks Directory module to find actively traded stocks across global markets.
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