Correlation Between Pengxin International and Xinhua Winshare
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By analyzing existing cross correlation between Pengxin International Mining and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Pengxin International and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Xinhua Winshare.
Diversification Opportunities for Pengxin International and Xinhua Winshare
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pengxin and Xinhua is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Pengxin International i.e., Pengxin International and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Pengxin International and Xinhua Winshare
Assuming the 90 days trading horizon Pengxin International is expected to generate 1.31 times less return on investment than Xinhua Winshare. In addition to that, Pengxin International is 1.18 times more volatile than Xinhua Winshare Publishing. It trades about 0.03 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about 0.05 per unit of volatility. If you would invest 982.00 in Xinhua Winshare Publishing on September 26, 2024 and sell it today you would earn a total of 624.00 from holding Xinhua Winshare Publishing or generate 63.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pengxin International Mining vs. Xinhua Winshare Publishing
Performance |
Timeline |
Pengxin International |
Xinhua Winshare Publ |
Pengxin International and Xinhua Winshare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengxin International and Xinhua Winshare
The main advantage of trading using opposite Pengxin International and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare'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 |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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