Correlation Between Pengxin International and Zhejiang Publishing
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By analyzing existing cross correlation between Pengxin International Mining and Zhejiang Publishing Media, you can compare the effects of market volatilities on Pengxin International and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Zhejiang Publishing.
Diversification Opportunities for Pengxin International and Zhejiang Publishing
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pengxin and Zhejiang is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Pengxin International i.e., Pengxin International and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Pengxin International and Zhejiang Publishing
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.23 times more return on investment than Zhejiang Publishing. However, Pengxin International is 1.23 times more volatile than Zhejiang Publishing Media. It trades about 0.15 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.0 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Pengxin International |
| Zhejiang Publishing Media |
Pengxin International and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Zhejiang Publishing
The main advantage of trading using opposite Pengxin International and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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