Correlation Between Shenyang Huitian and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Huitian Thermal and Chengtun Mining Group, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Chengtun Mining.
Diversification Opportunities for Shenyang Huitian and Chengtun Mining
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Chengtun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal 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 Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Chengtun Mining go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Chengtun Mining
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Chengtun Mining. In addition to that, Shenyang Huitian is 1.16 times more volatile than Chengtun Mining Group. It trades about -0.05 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.04 per unit of volatility. If you would invest 504.00 in Chengtun Mining Group on September 13, 2024 and sell it today you would lose (10.00) from holding Chengtun Mining Group or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Chengtun Mining Group
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Chengtun Mining Group |
Shenyang Huitian and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Chengtun Mining
The main advantage of trading using opposite Shenyang Huitian and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Zhangjiagang Freetrade Science | Shenyang Huitian vs. Citic Guoan Wine | Shenyang Huitian vs. YiDong Electronics Technology | Shenyang Huitian vs. Success Electronics |
| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |