Correlation Between Yunnan Jianzhijia and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Pengxin International Mining, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Pengxin International.
Diversification Opportunities for Yunnan Jianzhijia and Pengxin International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yunnan and Pengxin is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Pengxin International go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Pengxin International
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.08 times less risky than Pengxin International. The stock trades about -0.04 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Pengxin International Mining on November 5, 2024 and sell it today you would lose (15.00) from holding Pengxin International Mining or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Pengxin International Mining
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Pengxin International |
Yunnan Jianzhijia and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Pengxin International
The main advantage of trading using opposite Yunnan Jianzhijia and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Changjiang Publishing Media | Yunnan Jianzhijia vs. Guangdong Jinma Entertainment | Yunnan Jianzhijia vs. Hengdian Entertainment Co | Yunnan Jianzhijia vs. Shenzhen Urban Transport |
| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |