Correlation Between Pengxin International and Yunnan Jianzhijia
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By analyzing existing cross correlation between Pengxin International Mining and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Pengxin International and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Yunnan Jianzhijia.
Diversification Opportunities for Pengxin International and Yunnan Jianzhijia
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pengxin and Yunnan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Pengxin International i.e., Pengxin International and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Pengxin International and Yunnan Jianzhijia
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Yunnan Jianzhijia. But the stock apears to be less risky and, when comparing its historical volatility, Pengxin International Mining is 1.49 times less risky than Yunnan Jianzhijia. The stock trades about -0.02 of its potential returns per unit of risk. The Yunnan Jianzhijia Health Chain is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,119 in Yunnan Jianzhijia Health Chain on September 1, 2024 and sell it today you would earn a total of 513.00 from holding Yunnan Jianzhijia Health Chain or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Pengxin International |
| Yunnan Jianzhijia |
Pengxin International and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Yunnan Jianzhijia
The main advantage of trading using opposite Pengxin International and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.| Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining | Pengxin International vs. Rongsheng Petrochemical Co |
| Yunnan Jianzhijia vs. Dalian Thermal Power | Yunnan Jianzhijia vs. Ningbo Jintian Copper | Yunnan Jianzhijia vs. Pengxin International Mining | Yunnan Jianzhijia vs. Juewei Food Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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