Correlation Between Pengxin International and Suzhou Weizhixiang
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By analyzing existing cross correlation between Pengxin International Mining and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Pengxin International and Suzhou Weizhixiang 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 Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Suzhou Weizhixiang.
Diversification Opportunities for Pengxin International and Suzhou Weizhixiang
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Suzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Pengxin International i.e., Pengxin International and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Pengxin International and Suzhou Weizhixiang
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.22 times more return on investment than Suzhou Weizhixiang. However, Pengxin International is 1.22 times more volatile than Suzhou Weizhixiang Food. It trades about 0.06 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about 0.0 per unit of risk. If you would invest 230.00 in Pengxin International Mining on October 29, 2024 and sell it today you would earn a total of 89.00 from holding Pengxin International Mining or generate 38.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Pengxin International Mining vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Pengxin International |
| Suzhou Weizhixiang Food |
Pengxin International and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Suzhou Weizhixiang
The main advantage of trading using opposite Pengxin International and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Suzhou Weizhixiang 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 Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Pengxin International vs. Anhui Guofeng Plastic | Pengxin International vs. Anhui Fuhuang Steel | Pengxin International vs. Guangdong Liantai Environmental | Pengxin International vs. Western Metal Materials |
| Suzhou Weizhixiang vs. Eastern Air Logistics | Suzhou Weizhixiang vs. Hubei Xingfa Chemicals | Suzhou Weizhixiang vs. Keda Clean Energy | Suzhou Weizhixiang vs. Aba Chemicals Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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