Correlation Between Pengxin International and Suzhou Douson
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By analyzing existing cross correlation between Pengxin International Mining and Suzhou Douson Drilling, you can compare the effects of market volatilities on Pengxin International and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Suzhou Douson.
Diversification Opportunities for Pengxin International and Suzhou Douson
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pengxin and Suzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Pengxin International i.e., Pengxin International and Suzhou Douson go up and down completely randomly.
Pair Corralation between Pengxin International and Suzhou Douson
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Suzhou Douson. In addition to that, Pengxin International is 1.31 times more volatile than Suzhou Douson Drilling. It trades about -0.08 of its total potential returns per unit of risk. Suzhou Douson Drilling is currently generating about -0.01 per unit of volatility. If you would invest 2,523 in Suzhou Douson Drilling on October 10, 2024 and sell it today you would lose (53.00) from holding Suzhou Douson Drilling or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Pengxin International |
| Suzhou Douson Drilling |
Pengxin International and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Suzhou Douson
The main advantage of trading using opposite Pengxin International and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.| Pengxin International vs. Fujian Oriental Silver | Pengxin International vs. Fujian Longzhou Transportation | Pengxin International vs. Chenzhou Jingui Silver | Pengxin International vs. Tibet Huayu Mining |
| Suzhou Douson vs. Wuxi Dk Electronic | Suzhou Douson vs. Anhui Shiny Electronic | Suzhou Douson vs. Semiconductor Manufacturing Electronics | Suzhou Douson vs. China Minmetals Rare |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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