Correlation Between Central Plains and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Central Plains Environment and Chengtun Mining Group, you can compare the effects of market volatilities on Central Plains 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 Central Plains with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Plains and Chengtun Mining.
Diversification Opportunities for Central Plains and Chengtun Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Central and Chengtun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Central Plains Environment 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 Central Plains 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 Central Plains Environment 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 Central Plains i.e., Central Plains and Chengtun Mining go up and down completely randomly.
Pair Corralation between Central Plains and Chengtun Mining
Assuming the 90 days trading horizon Central Plains Environment is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Central Plains Environment is 1.47 times less risky than Chengtun Mining. The stock trades about -0.14 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Chengtun Mining Group on September 13, 2024 and sell it today you would lose (8.00) from holding Chengtun Mining Group or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Plains Environment vs. Chengtun Mining Group
Performance |
| Timeline |
| Central Plains Envir |
| Chengtun Mining Group |
Central Plains and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Plains and Chengtun Mining
The main advantage of trading using opposite Central Plains and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Plains 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.| Central Plains vs. Lutian Machinery Co | Central Plains vs. China Longyuan Power | Central Plains vs. PetroChina Co Ltd | Central Plains vs. Bank of China |
| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |