Correlation Between Hubei Huaqiang and Pengxin International
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By analyzing existing cross correlation between Hubei Huaqiang High Tech and Pengxin International Mining, you can compare the effects of market volatilities on Hubei Huaqiang 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 Hubei Huaqiang with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Huaqiang and Pengxin International.
Diversification Opportunities for Hubei Huaqiang and Pengxin International
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Pengxin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Huaqiang High Tech and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Hubei Huaqiang 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 Hubei Huaqiang High Tech 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 Hubei Huaqiang i.e., Hubei Huaqiang and Pengxin International go up and down completely randomly.
Pair Corralation between Hubei Huaqiang and Pengxin International
Assuming the 90 days trading horizon Hubei Huaqiang High Tech is expected to generate 0.68 times more return on investment than Pengxin International. However, Hubei Huaqiang High Tech is 1.46 times less risky than Pengxin International. It trades about 0.09 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 1,625 in Hubei Huaqiang High Tech on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Hubei Huaqiang High Tech or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Huaqiang High Tech vs. Pengxin International Mining
Performance |
| Timeline |
| Hubei Huaqiang High |
| Pengxin International |
Hubei Huaqiang and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Huaqiang and Pengxin International
The main advantage of trading using opposite Hubei Huaqiang and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Huaqiang 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.| Hubei Huaqiang vs. Xinjiang Communications Construction | Hubei Huaqiang vs. Zhongtong Guomai Communication | Hubei Huaqiang vs. Zhejiang Publishing Media | Hubei Huaqiang vs. Northern United Publishing |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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