Correlation Between Pengxin International and Keli Sensing
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By analyzing existing cross correlation between Pengxin International Mining and Keli Sensing Technology, you can compare the effects of market volatilities on Pengxin International and Keli Sensing 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 Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Keli Sensing.
Diversification Opportunities for Pengxin International and Keli Sensing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Keli is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology 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 Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Pengxin International i.e., Pengxin International and Keli Sensing go up and down completely randomly.
Pair Corralation between Pengxin International and Keli Sensing
Assuming the 90 days trading horizon Pengxin International is expected to generate 51.6 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Pengxin International Mining is 1.74 times less risky than Keli Sensing. It trades about 0.01 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,661 in Keli Sensing Technology on September 4, 2024 and sell it today you would earn a total of 1,699 from holding Keli Sensing Technology or generate 46.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Keli Sensing Technology
Performance |
| Timeline |
| Pengxin International |
| Keli Sensing Technology |
Pengxin International and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Keli Sensing
The main advantage of trading using opposite Pengxin International and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical Co |
| Keli Sensing vs. Biwin Storage Technology | Keli Sensing vs. PetroChina Co Ltd | Keli Sensing vs. Industrial and Commercial | Keli Sensing vs. China Construction Bank |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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