Correlation Between Pengxin International and Metallurgical
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By analyzing existing cross correlation between Pengxin International Mining and Metallurgical of, you can compare the effects of market volatilities on Pengxin International and Metallurgical 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 Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Metallurgical.
Diversification Opportunities for Pengxin International and Metallurgical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Metallurgical is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Metallurgical of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallurgical 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 Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallurgical has no effect on the direction of Pengxin International i.e., Pengxin International and Metallurgical go up and down completely randomly.
Pair Corralation between Pengxin International and Metallurgical
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Metallurgical. In addition to that, Pengxin International is 3.79 times more volatile than Metallurgical of. It trades about -0.06 of its total potential returns per unit of risk. Metallurgical of is currently generating about -0.11 per unit of volatility. If you would invest 316.00 in Metallurgical of on November 3, 2024 and sell it today you would lose (6.00) from holding Metallurgical of or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Metallurgical of
Performance |
| Timeline |
| Pengxin International |
| Metallurgical |
Pengxin International and Metallurgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Metallurgical
The main advantage of trading using opposite Pengxin International and Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Metallurgical 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 Metallurgical will offset losses from the drop in Metallurgical'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 |
| Metallurgical vs. Lotus Health Group | Metallurgical vs. Goodwill E Health | Metallurgical vs. Tibet Huayu Mining | Metallurgical vs. Hengli Industrial Development |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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