Correlation Between Zhengzhou Qianweiyangchu and Chengtun Mining
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By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Chengtun Mining Group, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Chengtun Mining.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Chengtun Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhengzhou and Chengtun is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food 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 Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food 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 Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Chengtun Mining go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Chengtun Mining
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu Food is expected to under-perform the Chengtun Mining. In addition to that, Zhengzhou Qianweiyangchu is 1.03 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 0.02 per unit of volatility. If you would invest 466.00 in Chengtun Mining Group on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Chengtun Mining Group or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Chengtun Mining Group
Performance |
| Timeline |
| Zhengzhou Qianweiyangchu |
| Chengtun Mining Group |
Zhengzhou Qianweiyangchu and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Chengtun Mining
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu 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.| Zhengzhou Qianweiyangchu vs. Lutian Machinery Co | Zhengzhou Qianweiyangchu vs. PetroChina Co Ltd | Zhengzhou Qianweiyangchu vs. Bank of China | Zhengzhou Qianweiyangchu vs. Gansu Jiu Steel |
| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe Publishing |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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