Correlation Between Hunan Investment and Chengtun Mining
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By analyzing existing cross correlation between Hunan Investment Group and Chengtun Mining Group, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Chengtun Mining.
Diversification Opportunities for Hunan Investment and Chengtun Mining
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hunan and Chengtun is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Chengtun Mining go up and down completely randomly.
Pair Corralation between Hunan Investment and Chengtun Mining
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Chengtun Mining. In addition to that, Hunan Investment is 1.29 times more volatile than Chengtun Mining Group. It trades about -0.38 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.02 per unit of volatility. If you would invest 494.00 in Chengtun Mining Group on October 12, 2024 and sell it today you would lose (6.00) from holding Chengtun Mining Group or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Chengtun Mining Group
Performance |
| Timeline |
| Hunan Investment |
| Chengtun Mining Group |
Hunan Investment and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Chengtun Mining
The main advantage of trading using opposite Hunan Investment and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Tianjin Hi Tech Development | Hunan Investment vs. Guangzhou Automobile Group | Hunan Investment vs. Fujian Newland Computer | Hunan Investment vs. ChengDu Hi Tech Development |
| Chengtun Mining vs. Hunan Investment Group | Chengtun Mining vs. Holitech Technology Co | Chengtun Mining vs. Dhc Software Co | Chengtun Mining vs. Metro Investment Development |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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