Correlation Between Beijing Venustech and Chengtun Mining
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By analyzing existing cross correlation between Beijing Venustech and Chengtun Mining Group, you can compare the effects of market volatilities on Beijing Venustech 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 Beijing Venustech with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Venustech and Chengtun Mining.
Diversification Opportunities for Beijing Venustech and Chengtun Mining
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Chengtun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Venustech 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 Beijing Venustech 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 Beijing Venustech 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 Beijing Venustech i.e., Beijing Venustech and Chengtun Mining go up and down completely randomly.
Pair Corralation between Beijing Venustech and Chengtun Mining
Assuming the 90 days trading horizon Beijing Venustech is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Venustech is 1.07 times less risky than Chengtun Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 458.00 in Chengtun Mining Group on September 14, 2024 and sell it today you would earn a total of 38.00 from holding Chengtun Mining Group or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Venustech vs. Chengtun Mining Group
Performance |
| Timeline |
| Beijing Venustech |
| Chengtun Mining Group |
Beijing Venustech and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Venustech and Chengtun Mining
The main advantage of trading using opposite Beijing Venustech and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Venustech 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.| Beijing Venustech vs. Chengtun Mining Group | Beijing Venustech vs. China Nonferrous Metal | Beijing Venustech vs. Iat Automobile Technology | Beijing Venustech vs. Pengxin International Mining |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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