Correlation Between Financial Street and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Financial Street Holdings and Pengxin International Mining, you can compare the effects of market volatilities on Financial Street 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 Financial Street with a short position of Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Pengxin International.
Diversification Opportunities for Financial Street and Pengxin International
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Financial and Pengxin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International and Financial Street 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 Financial Street Holdings 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 Financial Street i.e., Financial Street and Pengxin International go up and down completely randomly.
Pair Corralation between Financial Street and Pengxin International
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Financial Street Holdings is 1.13 times less risky than Pengxin International. The stock trades about -0.02 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 307.00 in Pengxin International Mining on September 29, 2024 and sell it today you would earn a total of 65.00 from holding Pengxin International Mining or generate 21.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Financial Street Holdings vs. Pengxin International Mining
Performance |
Timeline |
Financial Street Holdings |
Pengxin International |
Financial Street and Pengxin International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Financial Street and Pengxin International
The main advantage of trading using opposite Financial Street and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street 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.Financial Street vs. Cultural Investment Holdings | Financial Street vs. Henan Shuanghui Investment | Financial Street vs. Hubei Geoway Investment | Financial Street vs. Jiangsu Yueda Investment |
Pengxin International vs. CICT Mobile Communication | Pengxin International vs. Jinhui Liquor Co | Pengxin International vs. SUNSEA Telecommunications Co | Pengxin International vs. Guangdong Qunxing Toys |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements |