Correlation Between Chengtun Mining and China World
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By analyzing existing cross correlation between Chengtun Mining Group and China World Trade, you can compare the effects of market volatilities on Chengtun Mining and China World 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 Chengtun Mining with a short position of China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and China World.
Diversification Opportunities for Chengtun Mining and China World
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengtun and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade and Chengtun Mining 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 Chengtun Mining Group are associated (or correlated) with China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and China World go up and down completely randomly.
Pair Corralation between Chengtun Mining and China World
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.77 times more return on investment than China World. However, Chengtun Mining is 1.77 times more volatile than China World Trade. It trades about 0.27 of its potential returns per unit of risk. China World Trade is currently generating about -0.03 per unit of risk. If you would invest 495.00 in Chengtun Mining Group on December 10, 2024 and sell it today you would earn a total of 45.00 from holding Chengtun Mining Group or generate 9.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengtun Mining Group vs. China World Trade
Performance |
Timeline |
Chengtun Mining Group |
China World Trade |
Chengtun Mining and China World Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengtun Mining and China World
The main advantage of trading using opposite Chengtun Mining and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.Chengtun Mining vs. Jiangsu Yanghe Brewery | Chengtun Mining vs. Baoding Dongli Machinery | Chengtun Mining vs. Hunan Tyen Machinery | Chengtun Mining vs. Qijing Machinery |
China World vs. Citic Offshore Helicopter | China World vs. Zotye Automobile Co | China World vs. Quectel Wireless Solutions | China World vs. Jiahe Foods Industry |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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