Correlation Between Pengxin International and Hainan Mining
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By analyzing existing cross correlation between Pengxin International Mining and Hainan Mining Co, you can compare the effects of market volatilities on Pengxin International and Hainan 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Hainan Mining.
Diversification Opportunities for Pengxin International and Hainan Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pengxin and Hainan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Pengxin International i.e., Pengxin International and Hainan Mining go up and down completely randomly.
Pair Corralation between Pengxin International and Hainan Mining
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.41 times more return on investment than Hainan Mining. However, Pengxin International is 1.41 times more volatile than Hainan Mining Co. It trades about 0.13 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.09 per unit of risk. If you would invest 321.00 in Pengxin International Mining on August 27, 2024 and sell it today you would earn a total of 24.00 from holding Pengxin International Mining or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Hainan Mining Co
Performance |
| Timeline |
| Pengxin International |
| Hainan Mining |
Pengxin International and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Hainan Mining
The main advantage of trading using opposite Pengxin International and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Shandong Gold Mining | Pengxin International vs. Rongsheng Petrochemical Co | Pengxin International vs. Inner Mongolia BaoTou |
| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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