Correlation Between Jiangsu Yanghe and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Chengtun Mining Group, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Chengtun Mining.
Diversification Opportunities for Jiangsu Yanghe and Chengtun Mining
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Chengtun is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery 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 Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Chengtun Mining go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Chengtun Mining
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 1.65 times less risky than Chengtun Mining. The stock trades about -0.11 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 490.00 in Chengtun Mining Group on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Chengtun Mining Group or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Chengtun Mining Group
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Chengtun Mining Group |
Jiangsu Yanghe and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Chengtun Mining
The main advantage of trading using opposite Jiangsu Yanghe and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. Dongguan Aohai Technology | Jiangsu Yanghe vs. Northking Information Technology | Jiangsu Yanghe vs. ZYF Lopsking Aluminum | Jiangsu Yanghe vs. Kuangda Technology Group |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |