Correlation Between Pengxin International and Guangzhou KingTeller
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By analyzing existing cross correlation between Pengxin International Mining and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Pengxin International and Guangzhou KingTeller 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 Pengxin International with a short position of Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Guangzhou KingTeller.
Diversification Opportunities for Pengxin International and Guangzhou KingTeller
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pengxin and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller and Pengxin International 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 Pengxin International Mining are associated (or correlated) with Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Pengxin International i.e., Pengxin International and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Pengxin International and Guangzhou KingTeller
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 0.8 times more return on investment than Guangzhou KingTeller. However, Pengxin International Mining is 1.24 times less risky than Guangzhou KingTeller. It trades about 0.18 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.12 per unit of risk. If you would invest 274.00 in Pengxin International Mining on September 26, 2024 and sell it today you would earn a total of 129.00 from holding Pengxin International Mining or generate 47.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Pengxin International Mining vs. Guangzhou KingTeller Technolog
Performance |
Timeline |
Pengxin International |
Guangzhou KingTeller |
Pengxin International and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengxin International and Guangzhou KingTeller
The main advantage of trading using opposite Pengxin International and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Shandong Gold Mining | Pengxin International vs. Rongsheng Petrochemical Co | Pengxin International vs. Inner Mongolia BaoTou |
Guangzhou KingTeller vs. Pengxin International Mining | Guangzhou KingTeller vs. Jiangxi Selon Industrial | Guangzhou KingTeller vs. Anhui Tongguan Copper | Guangzhou KingTeller vs. Ningbo Thermal Power |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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