Correlation Between Chengtun Mining and Keda Clean
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By analyzing existing cross correlation between Chengtun Mining Group and Keda Clean Energy, you can compare the effects of market volatilities on Chengtun Mining and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Keda Clean.
Diversification Opportunities for Chengtun Mining and Keda Clean
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengtun and Keda is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Keda Clean go up and down completely randomly.
Pair Corralation between Chengtun Mining and Keda Clean
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.19 times more return on investment than Keda Clean. However, Chengtun Mining is 1.19 times more volatile than Keda Clean Energy. It trades about 0.06 of its potential returns per unit of risk. Keda Clean Energy is currently generating about 0.0 per unit of risk. If you would invest 403.00 in Chengtun Mining Group on September 29, 2024 and sell it today you would earn a total of 78.00 from holding Chengtun Mining Group or generate 19.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengtun Mining Group vs. Keda Clean Energy
Performance |
Timeline |
Chengtun Mining Group |
Keda Clean Energy |
Chengtun Mining and Keda Clean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengtun Mining and Keda Clean
The main advantage of trading using opposite Chengtun Mining and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.Chengtun Mining vs. Malion New Materials | Chengtun Mining vs. Tibet Huayu Mining | Chengtun Mining vs. Hainan Mining Co | Chengtun Mining vs. Industrial Bank Co |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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