Correlation Between Pengxin International and Zhengzhou Coal
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By analyzing existing cross correlation between Pengxin International Mining and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Pengxin International and Zhengzhou Coal 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 Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Zhengzhou Coal.
Diversification Opportunities for Pengxin International and Zhengzhou Coal
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Zhengzhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining 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 Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Pengxin International i.e., Pengxin International and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Pengxin International and Zhengzhou Coal
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Zhengzhou Coal. In addition to that, Pengxin International is 2.38 times more volatile than Zhengzhou Coal Mining. It trades about -0.19 of its total potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.03 per unit of volatility. If you would invest 1,306 in Zhengzhou Coal Mining on October 28, 2024 and sell it today you would earn a total of 11.00 from holding Zhengzhou Coal Mining or generate 0.84% 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. Zhengzhou Coal Mining
Performance |
| Timeline |
| Pengxin International |
| Zhengzhou Coal Mining |
Pengxin International and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Zhengzhou Coal
The main advantage of trading using opposite Pengxin International and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Pengxin International vs. Anhui Guofeng Plastic | Pengxin International vs. Anhui Fuhuang Steel | Pengxin International vs. Guangdong Liantai Environmental | Pengxin International vs. Western Metal Materials |
| Zhengzhou Coal vs. Jiangnan Mould Plastic | Zhengzhou Coal vs. Jilin OLED Material | Zhengzhou Coal vs. Advanced Technology Materials | Zhengzhou Coal vs. Super Dragon Engineering Plastics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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