Correlation Between Shenzhen Topway and Chengtun Mining
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By analyzing existing cross correlation between Shenzhen Topway Video and Chengtun Mining Group, you can compare the effects of market volatilities on Shenzhen Topway 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 Shenzhen Topway with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Chengtun Mining.
Diversification Opportunities for Shenzhen Topway and Chengtun Mining
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Chengtun is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video 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 Shenzhen Topway 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 Shenzhen Topway Video 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 Shenzhen Topway i.e., Shenzhen Topway and Chengtun Mining go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Chengtun Mining
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to under-perform the Chengtun Mining. In addition to that, Shenzhen Topway is 1.42 times more volatile than Chengtun Mining Group. It trades about -0.24 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.35 per unit of volatility. If you would invest 466.00 in Chengtun Mining Group on October 23, 2024 and sell it today you would earn a total of 66.00 from holding Chengtun Mining Group or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Chengtun Mining Group
Performance |
| Timeline |
| Shenzhen Topway Video |
| Chengtun Mining Group |
Shenzhen Topway and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Chengtun Mining
The main advantage of trading using opposite Shenzhen Topway and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway 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.| Shenzhen Topway vs. Xinjiang Baodi Mining | Shenzhen Topway vs. Anhui Jinhe Industrial | Shenzhen Topway vs. Tibet Huayu Mining | Shenzhen Topway vs. Hubeiyichang Transportation Group |
| Chengtun Mining vs. Ningbo Fujia Industrial | Chengtun Mining vs. Sichuan Yahua Industrial | Chengtun Mining vs. Anhui Jinhe Industrial | Chengtun Mining vs. Zhengzhou Coal 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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