Correlation Between China Securities and Pengxin International
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By analyzing existing cross correlation between China Securities 800 and Pengxin International Mining, you can compare the effects of market volatilities on China Securities 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 China Securities with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Pengxin International.
Diversification Opportunities for China Securities and Pengxin International
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Pengxin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and China Securities 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 China Securities 800 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 China Securities i.e., China Securities and Pengxin International go up and down completely randomly.
Pair Corralation between China Securities and Pengxin International
Assuming the 90 days trading horizon China Securities is expected to generate 2.26 times less return on investment than Pengxin International. But when comparing it to its historical volatility, China Securities 800 is 1.66 times less risky than Pengxin International. It trades about 0.17 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Pengxin International Mining on September 4, 2024 and sell it today you would earn a total of 122.00 from holding Pengxin International Mining or generate 59.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
China Securities 800 vs. Pengxin International Mining
Performance |
Timeline |
China Securities and Pengxin International Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
Pengxin International Mining
Pair trading matchups for Pengxin International
Pair Trading with China Securities and Pengxin International
The main advantage of trading using opposite China Securities and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities 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.China Securities vs. Xiwang Foodstuffs Co | China Securities vs. Beijing Sanyuan Foods | China Securities vs. Xinjiang Tianrun Dairy | China Securities vs. GRINM Semiconductor Materials |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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