Correlation Between Pengxin International and Heilongjiang Transport
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By analyzing existing cross correlation between Pengxin International Mining and Heilongjiang Transport Development, you can compare the effects of market volatilities on Pengxin International and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Heilongjiang Transport.
Diversification Opportunities for Pengxin International and Heilongjiang Transport
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Heilongjiang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Pengxin International i.e., Pengxin International and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Pengxin International and Heilongjiang Transport
Assuming the 90 days trading horizon Pengxin International is expected to generate 1.52 times less return on investment than Heilongjiang Transport. But when comparing it to its historical volatility, Pengxin International Mining is 1.02 times less risky than Heilongjiang Transport. It trades about 0.02 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 298.00 in Heilongjiang Transport Development on October 7, 2024 and sell it today you would earn a total of 41.00 from holding Heilongjiang Transport Development or generate 13.76% 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. Heilongjiang Transport Develop
Performance |
| Timeline |
| Pengxin International |
| Heilongjiang Transport |
Pengxin International and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Heilongjiang Transport
The main advantage of trading using opposite Pengxin International and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical Co |
| Heilongjiang Transport vs. BeiGene | Heilongjiang Transport vs. G bits Network Technology | Heilongjiang Transport vs. China Mobile Limited | Heilongjiang Transport vs. Gansu Jiu Steel |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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