Correlation Between Keli Sensing and Pengxin International
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By analyzing existing cross correlation between Keli Sensing Technology and Pengxin International Mining, you can compare the effects of market volatilities on Keli Sensing 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 Keli Sensing with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keli Sensing and Pengxin International.
Diversification Opportunities for Keli Sensing and Pengxin International
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keli and Pengxin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Keli Sensing 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 Keli Sensing 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 Keli Sensing 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 Keli Sensing i.e., Keli Sensing and Pengxin International go up and down completely randomly.
Pair Corralation between Keli Sensing and Pengxin International
Assuming the 90 days trading horizon Keli Sensing Technology is expected to generate 1.78 times more return on investment than Pengxin International. However, Keli Sensing is 1.78 times more volatile than Pengxin International Mining. It trades about 0.3 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.04 per unit of risk. If you would invest 3,661 in Keli Sensing Technology on September 3, 2024 and sell it today you would earn a total of 1,443 from holding Keli Sensing Technology or generate 39.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keli Sensing Technology vs. Pengxin International Mining
Performance |
| Timeline |
| Keli Sensing Technology |
| Pengxin International |
Keli Sensing and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keli Sensing and Pengxin International
The main advantage of trading using opposite Keli Sensing and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keli Sensing 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.| Keli Sensing vs. Zhongtong Guomai Communication | Keli Sensing vs. Anhui Fuhuang Steel | Keli Sensing vs. Jonjee Hi tech Industrial | Keli Sensing vs. Dongjiang Environmental Co |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Hoshine Silicon Ind |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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