Correlation Between Shanghai Broadband and Pengxin International
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By analyzing existing cross correlation between Shanghai Broadband Technology and Pengxin International Mining, you can compare the effects of market volatilities on Shanghai Broadband and Pengxin International 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 Shanghai Broadband with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Pengxin International.
Diversification Opportunities for Shanghai Broadband and Pengxin International
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Pengxin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Pengxin International go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Pengxin International
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Broadband Technology is 1.23 times less risky than Pengxin International. The stock trades about -0.02 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Pengxin International Mining on October 7, 2024 and sell it today you would earn a total of 5.00 from holding Pengxin International Mining or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Pengxin International Mining
Performance |
| Timeline |
| Shanghai Broadband |
| Pengxin International |
Shanghai Broadband and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Pengxin International
The main advantage of trading using opposite Shanghai Broadband and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Rongsheng Petrochemical Co |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Rongsheng Petrochemical 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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