Correlation Between Pengxin International and Zijin Mining
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By analyzing existing cross correlation between Pengxin International Mining and Zijin Mining Group, you can compare the effects of market volatilities on Pengxin International and Zijin 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Zijin Mining.
Diversification Opportunities for Pengxin International and Zijin Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pengxin and Zijin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Pengxin International i.e., Pengxin International and Zijin Mining go up and down completely randomly.
Pair Corralation between Pengxin International and Zijin Mining
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.72 times more return on investment than Zijin Mining. However, Pengxin International is 1.72 times more volatile than Zijin Mining Group. It trades about 0.15 of its potential returns per unit of risk. Zijin Mining Group is currently generating about -0.04 per unit of risk. If you would invest 283.00 in Pengxin International Mining on August 25, 2024 and sell it today you would earn a total of 62.00 from holding Pengxin International Mining or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Zijin Mining Group
Performance |
| Timeline |
| Pengxin International |
| Zijin Mining Group |
Pengxin International and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Zijin Mining
The main advantage of trading using opposite Pengxin International and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Zijin 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 Zijin Mining will offset losses from the drop in Zijin Mining'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 |
| Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Sunwave Communications Co | Zijin Mining vs. China Sports Industry | Zijin Mining vs. Offcn Education Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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