Correlation Between Pengxin International and Dongxing Sec
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By analyzing existing cross correlation between Pengxin International Mining and Dongxing Sec Co, you can compare the effects of market volatilities on Pengxin International and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Dongxing Sec.
Diversification Opportunities for Pengxin International and Dongxing Sec
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pengxin and Dongxing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Pengxin International i.e., Pengxin International and Dongxing Sec go up and down completely randomly.
Pair Corralation between Pengxin International and Dongxing Sec
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.9 times more return on investment than Dongxing Sec. However, Pengxin International is 1.9 times more volatile than Dongxing Sec Co. It trades about -0.07 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.19 per unit of risk. If you would invest 340.00 in Pengxin International Mining on October 10, 2024 and sell it today you would lose (35.00) from holding Pengxin International Mining or give up 10.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pengxin International Mining vs. Dongxing Sec Co
Performance |
| Timeline |
| Pengxin International |
| Dongxing Sec |
Pengxin International and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Dongxing Sec
The main advantage of trading using opposite Pengxin International and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Pengxin International vs. Dalian Thermal Power | Pengxin International vs. Ligao Foods CoLtd | Pengxin International vs. Xiamen Jihong Package | Pengxin International vs. Gan Yuan Foods |
| Dongxing Sec vs. Liaoning Dingjide Petrochemical | Dongxing Sec vs. HeBei Jinniu Chemical | Dongxing Sec vs. Jinsanjiang Silicon Material | Dongxing Sec vs. Jinling Hotel Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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