Correlation Between Pengxin International and Cansino Biologics
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By analyzing existing cross correlation between Pengxin International Mining and Cansino Biologics, you can compare the effects of market volatilities on Pengxin International and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Cansino Biologics.
Diversification Opportunities for Pengxin International and Cansino Biologics
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pengxin and Cansino is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Pengxin International i.e., Pengxin International and Cansino Biologics go up and down completely randomly.
Pair Corralation between Pengxin International and Cansino Biologics
Assuming the 90 days trading horizon Pengxin International Mining is expected to under-perform the Cansino Biologics. In addition to that, Pengxin International is 1.71 times more volatile than Cansino Biologics. It trades about -0.19 of its total potential returns per unit of risk. Cansino Biologics is currently generating about -0.04 per unit of volatility. If you would invest 5,998 in Cansino Biologics on October 28, 2024 and sell it today you would lose (123.00) from holding Cansino Biologics or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. Cansino Biologics
Performance |
| Timeline |
| Pengxin International |
| Cansino Biologics |
Pengxin International and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and Cansino Biologics
The main advantage of trading using opposite Pengxin International and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.The idea behind Pengxin International Mining and Cansino Biologics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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