Correlation Between Guangdong Silvere and Chengtun Mining
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By analyzing existing cross correlation between Guangdong Silvere Sci and Chengtun Mining Group, you can compare the effects of market volatilities on Guangdong Silvere 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 Guangdong Silvere with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Chengtun Mining.
Diversification Opportunities for Guangdong Silvere and Chengtun Mining
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Chengtun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 Guangdong Silvere 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 Guangdong Silvere Sci 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 Guangdong Silvere i.e., Guangdong Silvere and Chengtun Mining go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Chengtun Mining
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.7 times more return on investment than Chengtun Mining. However, Guangdong Silvere is 1.7 times more volatile than Chengtun Mining Group. It trades about 0.15 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.24 per unit of risk. If you would invest 512.00 in Guangdong Silvere Sci on September 12, 2024 and sell it today you would earn a total of 184.00 from holding Guangdong Silvere Sci or generate 35.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Chengtun Mining Group
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Chengtun Mining Group |
Guangdong Silvere and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Chengtun Mining
The main advantage of trading using opposite Guangdong Silvere and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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.| Guangdong Silvere vs. Beijing Mainstreets Investment | Guangdong Silvere vs. Shenzhen Centralcon Investment | Guangdong Silvere vs. China Asset Management | Guangdong Silvere vs. HeNan Splendor Science |
| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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