Correlation Between Zhejiang Kingland and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Pengxin International Mining, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Pengxin International.
Diversification Opportunities for Zhejiang Kingland and Pengxin International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Pengxin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Pengxin International go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Pengxin International
Assuming the 90 days trading horizon Zhejiang Kingland is expected to generate 2.18 times less return on investment than Pengxin International. But when comparing it to its historical volatility, Zhejiang Kingland Pipeline is 1.49 times less risky than Pengxin International. It trades about 0.15 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Pengxin International Mining on September 7, 2024 and sell it today you would earn a total of 121.00 from holding Pengxin International Mining or generate 57.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Pengxin International Mining
Performance |
Timeline |
Zhejiang Kingland |
Pengxin International |
Zhejiang Kingland and Pengxin International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Kingland and Pengxin International
The main advantage of trading using opposite Zhejiang Kingland and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.Zhejiang Kingland vs. Bosera ChiNext ETF | Zhejiang Kingland vs. Gansu Jiu Steel | Zhejiang Kingland vs. Ming Yang Smart | Zhejiang Kingland vs. Shandong Mining Machinery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |