Correlation Between Guangdong Wens and Chengtun Mining
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Chengtun Mining Group, you can compare the effects of market volatilities on Guangdong Wens 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 Wens with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Chengtun Mining.
Diversification Opportunities for Guangdong Wens and Chengtun Mining
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Chengtun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff 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 Wens 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 Wens Foodstuff 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 Wens i.e., Guangdong Wens and Chengtun Mining go up and down completely randomly.
Pair Corralation between Guangdong Wens and Chengtun Mining
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.56 times less risky than Chengtun Mining. The stock trades about -0.19 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 466.00 in Chengtun Mining Group on October 24, 2024 and sell it today you would earn a total of 66.00 from holding Chengtun Mining Group or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Chengtun Mining Group
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Chengtun Mining Group |
Guangdong Wens and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Chengtun Mining
The main advantage of trading using opposite Guangdong Wens and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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 Wens vs. Shandong Hongchuang Aluminum | Guangdong Wens vs. SSAW Hotels Resorts | Guangdong Wens vs. Sino Platinum Metals Co | Guangdong Wens vs. Beijing Kingsoft Office |
| Chengtun Mining vs. Ningbo Fujia Industrial | Chengtun Mining vs. Sichuan Yahua Industrial | Chengtun Mining vs. Anhui Jinhe Industrial | Chengtun Mining vs. Zhengzhou Coal 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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