Correlation Between Pengxin International and Qingdao Baheal
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By analyzing existing cross correlation between Pengxin International Mining and Qingdao Baheal Medical, you can compare the effects of market volatilities on Pengxin International and Qingdao Baheal 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 Qingdao Baheal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Qingdao Baheal.
Diversification Opportunities for Pengxin International and Qingdao Baheal
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pengxin and Qingdao is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Qingdao Baheal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Baheal Medical 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 Qingdao Baheal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Baheal Medical has no effect on the direction of Pengxin International i.e., Pengxin International and Qingdao Baheal go up and down completely randomly.
Pair Corralation between Pengxin International and Qingdao Baheal
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 1.16 times more return on investment than Qingdao Baheal. However, Pengxin International is 1.16 times more volatile than Qingdao Baheal Medical. It trades about 0.02 of its potential returns per unit of risk. Qingdao Baheal Medical is currently generating about -0.02 per unit of risk. If you would invest 288.00 in Pengxin International Mining on October 9, 2024 and sell it today you would earn a total of 17.00 from holding Pengxin International Mining or generate 5.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pengxin International Mining vs. Qingdao Baheal Medical
Performance |
Timeline |
Pengxin International |
Qingdao Baheal Medical |
Pengxin International and Qingdao Baheal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengxin International and Qingdao Baheal
The main advantage of trading using opposite Pengxin International and Qingdao Baheal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International position performs unexpectedly, Qingdao Baheal 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 Qingdao Baheal will offset losses from the drop in Qingdao Baheal's long position.Pengxin International vs. Fujian Oriental Silver | Pengxin International vs. Fujian Longzhou Transportation | Pengxin International vs. Chenzhou Jingui Silver | Pengxin International vs. Tibet Huayu Mining |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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