Correlation Between Jinhui Mining and Pengxin International
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By analyzing existing cross correlation between Jinhui Mining Co and Pengxin International Mining, you can compare the effects of market volatilities on Jinhui Mining 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 Jinhui Mining with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Mining and Pengxin International.
Diversification Opportunities for Jinhui Mining and Pengxin International
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Pengxin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Mining Co and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Jinhui Mining 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 Jinhui Mining Co 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 Jinhui Mining i.e., Jinhui Mining and Pengxin International go up and down completely randomly.
Pair Corralation between Jinhui Mining and Pengxin International
Assuming the 90 days trading horizon Jinhui Mining Co is expected to generate 0.31 times more return on investment than Pengxin International. However, Jinhui Mining Co is 3.25 times less risky than Pengxin International. It trades about -0.06 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.08 per unit of risk. If you would invest 1,149 in Jinhui Mining Co on October 22, 2024 and sell it today you would lose (20.00) from holding Jinhui Mining Co or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jinhui Mining Co vs. Pengxin International Mining
Performance |
| Timeline |
| Jinhui Mining |
| Pengxin International |
Jinhui Mining and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Mining and Pengxin International
The main advantage of trading using opposite Jinhui Mining and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Mining 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.| Jinhui Mining vs. Central Plains Environment | Jinhui Mining vs. Aluminum Corp of | Jinhui Mining vs. ZYF Lopsking Aluminum | Jinhui Mining vs. Angang Steel Co |
| Pengxin International vs. Xiangyu Medical Co | Pengxin International vs. Kontour Medical Technology | Pengxin International vs. Shenzhen Zqgame | Pengxin International vs. MayAir Technology 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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