Correlation Between Zhongtong Guomai and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongtong Guomai Communication and Chengtun Mining Group, you can compare the effects of market volatilities on Zhongtong Guomai and Chengtun Mining 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 Zhongtong Guomai with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Chengtun Mining.
Diversification Opportunities for Zhongtong Guomai and Chengtun Mining
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Chengtun is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Chengtun Mining go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Chengtun Mining
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.27 times more return on investment than Chengtun Mining. However, Zhongtong Guomai is 1.27 times more volatile than Chengtun Mining Group. It trades about 0.01 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.01 per unit of risk. If you would invest 1,156 in Zhongtong Guomai Communication on September 26, 2024 and sell it today you would lose (73.00) from holding Zhongtong Guomai Communication or give up 6.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Chengtun Mining Group
Performance |
Timeline |
Zhongtong Guomai Com |
Chengtun Mining Group |
Zhongtong Guomai and Chengtun Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Chengtun Mining
The main advantage of trading using opposite Zhongtong Guomai and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.Zhongtong Guomai vs. Kweichow Moutai Co | Zhongtong Guomai vs. Shenzhen Mindray Bio Medical | Zhongtong Guomai vs. Jiangsu Pacific Quartz | Zhongtong Guomai vs. G bits Network Technology |
Chengtun Mining vs. Xinjiang Communications Construction | Chengtun Mining vs. Wintao Communications Co | Chengtun Mining vs. Zhongtong Guomai Communication | Chengtun Mining vs. Iat Automobile Technology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |