Correlation Between Jiujiang Shanshui and Chengtun Mining
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Chengtun Mining Group, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Chengtun Mining.
Diversification Opportunities for Jiujiang Shanshui and Chengtun Mining
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiujiang and Chengtun is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology 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 Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Chengtun Mining go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Chengtun Mining
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Chengtun Mining. In addition to that, Jiujiang Shanshui is 1.03 times more volatile than Chengtun Mining Group. It trades about -0.28 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.02 per unit of volatility. If you would invest 494.00 in Chengtun Mining Group on October 12, 2024 and sell it today you would lose (6.00) from holding Chengtun Mining Group or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Chengtun Mining Group
Performance |
| Timeline |
| Jiujiang Shanshui |
| Chengtun Mining Group |
Jiujiang Shanshui and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Chengtun Mining
The main advantage of trading using opposite Jiujiang Shanshui and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. China Eastern Airlines | Jiujiang Shanshui vs. Soyea Technology Co | Jiujiang Shanshui vs. MayAir Technology Co | Jiujiang Shanshui vs. Holitech Technology Co |
| Chengtun Mining vs. Chongqing Changan Automobile | Chengtun Mining vs. Iat Automobile Technology | Chengtun Mining vs. Shenzhen Zhongzhuang Construction | Chengtun Mining vs. Hongrun Construction Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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