Correlation Between China World and Chengtun Mining
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By analyzing existing cross correlation between China World Trade and Chengtun Mining Group, you can compare the effects of market volatilities on China World 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 China World with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Chengtun Mining.
Diversification Opportunities for China World and Chengtun Mining
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Chengtun is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade 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 China World 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 China World Trade 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 China World i.e., China World and Chengtun Mining go up and down completely randomly.
Pair Corralation between China World and Chengtun Mining
Assuming the 90 days trading horizon China World Trade is expected to generate 0.61 times more return on investment than Chengtun Mining. However, China World Trade is 1.63 times less risky than Chengtun Mining. It trades about -0.19 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.16 per unit of risk. If you would invest 2,365 in China World Trade on August 29, 2024 and sell it today you would lose (130.00) from holding China World Trade or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Chengtun Mining Group
Performance |
| Timeline |
| China World Trade |
| Chengtun Mining Group |
China World and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Chengtun Mining
The main advantage of trading using opposite China World and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World 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.| China World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
| Chengtun Mining vs. Tianshan Aluminum Group | Chengtun Mining vs. Dalian Zeus Entertainment | Chengtun Mining vs. Focus Media Information | Chengtun Mining vs. Lander Sports Development |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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