Correlation Between Qingdao Choho and Chengtun Mining
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By analyzing existing cross correlation between Qingdao Choho Industrial and Chengtun Mining Group, you can compare the effects of market volatilities on Qingdao Choho 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 Qingdao Choho with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Chengtun Mining.
Diversification Opportunities for Qingdao Choho and Chengtun Mining
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Qingdao and Chengtun is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho 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 Qingdao Choho 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 Qingdao Choho 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 Qingdao Choho i.e., Qingdao Choho and Chengtun Mining go up and down completely randomly.
Pair Corralation between Qingdao Choho and Chengtun Mining
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to generate 1.17 times more return on investment than Chengtun Mining. However, Qingdao Choho is 1.17 times more volatile than Chengtun Mining Group. It trades about 0.06 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.13 per unit of risk. If you would invest 2,698 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Qingdao Choho Industrial or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Chengtun Mining Group
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Chengtun Mining Group |
Qingdao Choho and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Chengtun Mining
The main advantage of trading using opposite Qingdao Choho and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho 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.| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co | Chengtun Mining vs. Hoshine Silicon Ind |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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