Correlation Between Pengxin International and Jiangsu Xinri
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pengxin International Mining and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Pengxin International and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Jiangsu Xinri.
Diversification Opportunities for Pengxin International and Jiangsu Xinri
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pengxin and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Pengxin International i.e., Pengxin International and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Pengxin International and Jiangsu Xinri
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.45 times more return on investment than Jiangsu Xinri. However, Pengxin International is 1.45 times more volatile than Jiangsu Xinri E Vehicle. It trades about 0.22 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.1 per unit of risk. 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Pengxin International Mining vs. Jiangsu Xinri E Vehicle
Performance |
Timeline |
Pengxin International |
Jiangsu Xinri E |
Pengxin International and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengxin International and Jiangsu Xinri
The main advantage of trading using opposite Pengxin International and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.The idea behind Pengxin International Mining and Jiangsu Xinri E Vehicle pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Jiangsu Xinri vs. Nanjing Putian Telecommunications | Jiangsu Xinri vs. Tongyu Communication | Jiangsu Xinri vs. Nexchip Semiconductor Corp | Jiangsu Xinri vs. State Grid InformationCommunication |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |