Correlation Between Anhui Jinhe and Chengtun Mining
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Chengtun Mining Group, you can compare the effects of market volatilities on Anhui Jinhe 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 Anhui Jinhe with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Chengtun Mining.
Diversification Opportunities for Anhui Jinhe and Chengtun Mining
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Chengtun is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe 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 Anhui Jinhe 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 Anhui Jinhe 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 Anhui Jinhe i.e., Anhui Jinhe and Chengtun Mining go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Chengtun Mining
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.89 times more return on investment than Chengtun Mining. However, Anhui Jinhe Industrial is 1.12 times less risky than Chengtun Mining. It trades about 0.22 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 2,255 in Anhui Jinhe Industrial on November 3, 2024 and sell it today you would earn a total of 160.00 from holding Anhui Jinhe Industrial or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Chengtun Mining Group
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Chengtun Mining Group |
Anhui Jinhe and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Chengtun Mining
The main advantage of trading using opposite Anhui Jinhe and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe 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.| Anhui Jinhe vs. Guangxi Wuzhou Communications | Anhui Jinhe vs. China Mobile Limited | Anhui Jinhe vs. Tongyu Communication | Anhui Jinhe vs. Xizi Clean Energy |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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