Correlation Between Jiangsu Xinri and Pengxin International
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Pengxin International Mining, you can compare the effects of market volatilities on Jiangsu Xinri 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 Jiangsu Xinri with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Pengxin International.
Diversification Opportunities for Jiangsu Xinri and Pengxin International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Pengxin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Jiangsu Xinri 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 Jiangsu Xinri E Vehicle 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 Jiangsu Xinri i.e., Jiangsu Xinri and Pengxin International go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Pengxin International
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 3.19 times less return on investment than Pengxin International. But when comparing it to its historical volatility, Jiangsu Xinri E Vehicle is 1.45 times less risky than Pengxin International. It trades about 0.1 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Pengxin International Mining
Performance |
Timeline |
Jiangsu Xinri E |
Pengxin International |
Jiangsu Xinri and Pengxin International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Xinri and Pengxin International
The main advantage of trading using opposite Jiangsu Xinri and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri 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.Jiangsu Xinri vs. Muyuan Foodstuff Co | Jiangsu Xinri vs. Maoming Petro Chemical Shihua | Jiangsu Xinri vs. Beijing Sanyuan Foods | Jiangsu Xinri vs. North Chemical Industries |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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