Correlation Between Pengxin International and Huaibei Mining
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By analyzing existing cross correlation between Pengxin International Mining and Huaibei Mining Holdings, you can compare the effects of market volatilities on Pengxin International and Huaibei Mining 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 Huaibei Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Huaibei Mining.
Diversification Opportunities for Pengxin International and Huaibei Mining
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pengxin and Huaibei is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Huaibei Mining Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaibei Mining Holdings 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 Huaibei Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaibei Mining Holdings has no effect on the direction of Pengxin International i.e., Pengxin International and Huaibei Mining go up and down completely randomly.
Pair Corralation between Pengxin International and Huaibei Mining
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.58 times more return on investment than Huaibei Mining. However, Pengxin International is 1.58 times more volatile than Huaibei Mining Holdings. It trades about 0.05 of its potential returns per unit of risk. Huaibei Mining Holdings is currently generating about -0.05 per unit of risk. If you would invest 252.00 in Pengxin International Mining on October 22, 2024 and sell it today you would earn a total of 79.00 from holding Pengxin International Mining or generate 31.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Huaibei Mining Holdings
Performance |
| Timeline |
| Pengxin International |
| Huaibei Mining Holdings |
Pengxin International and Huaibei Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Huaibei Mining
The main advantage of trading using opposite Pengxin International and Huaibei Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Huaibei Mining 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 Huaibei Mining will offset losses from the drop in Huaibei Mining's long position.| Pengxin International vs. Xiangyu Medical Co | Pengxin International vs. Kontour Medical Technology | Pengxin International vs. Shenzhen Zqgame | Pengxin International vs. MayAir Technology Co |
| Huaibei Mining vs. Songz Automobile Air | Huaibei Mining vs. China National Software | Huaibei Mining vs. Guangzhou Automobile Group | Huaibei Mining vs. Anhui Jianghuai Automobile |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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