Correlation Between Sichuan Yahua and Chengtun Mining
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Chengtun Mining Group, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Chengtun Mining.
Diversification Opportunities for Sichuan Yahua and Chengtun Mining
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and Chengtun is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial 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 Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Chengtun Mining go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Chengtun Mining
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.52 times more return on investment than Chengtun Mining. However, Sichuan Yahua is 1.52 times more volatile than Chengtun Mining Group. It trades about 0.28 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.12 per unit of risk. If you would invest 1,139 in Sichuan Yahua Industrial on November 3, 2024 and sell it today you would earn a total of 177.00 from holding Sichuan Yahua Industrial or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Chengtun Mining Group
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Chengtun Mining Group |
Sichuan Yahua and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Chengtun Mining
The main advantage of trading using opposite Sichuan Yahua and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Jiaozuo Wanfang Aluminum | Sichuan Yahua vs. Metro Investment Development | Sichuan Yahua vs. Shenzhen Centralcon Investment | Sichuan Yahua vs. Sino Platinum Metals Co |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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