Correlation Between Guizhou Chanhen and Chengtun Mining
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Chengtun Mining Group, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Chengtun Mining.
Diversification Opportunities for Guizhou Chanhen and Chengtun Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guizhou and Chengtun is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Chengtun Mining go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Chengtun Mining
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Chengtun Mining. In addition to that, Guizhou Chanhen is 1.28 times more volatile than Chengtun Mining Group. It trades about -0.1 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.03 per unit of volatility. If you would invest 496.00 in Chengtun Mining Group on October 13, 2024 and sell it today you would lose (8.00) from holding Chengtun Mining Group or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Chengtun Mining Group
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Chengtun Mining Group |
Guizhou Chanhen and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Chengtun Mining
The main advantage of trading using opposite Guizhou Chanhen and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
| Chengtun Mining vs. Harbin Hatou Investment | Chengtun Mining vs. AVIC Fund Management | Chengtun Mining vs. China Asset Management | Chengtun Mining vs. Postal Savings Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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