Correlation Between Beijing Capital and Chengtun Mining
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By analyzing existing cross correlation between Beijing Capital Co and Chengtun Mining Group, you can compare the effects of market volatilities on Beijing Capital 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 Beijing Capital with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Capital and Chengtun Mining.
Diversification Opportunities for Beijing Capital and Chengtun Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Chengtun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Capital Co 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 Beijing Capital 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 Beijing Capital Co 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 Beijing Capital i.e., Beijing Capital and Chengtun Mining go up and down completely randomly.
Pair Corralation between Beijing Capital and Chengtun Mining
Assuming the 90 days trading horizon Beijing Capital Co is expected to generate 0.48 times more return on investment than Chengtun Mining. However, Beijing Capital Co is 2.1 times less risky than Chengtun Mining. It trades about 0.06 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.01 per unit of risk. If you would invest 293.00 in Beijing Capital Co on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Beijing Capital Co or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Capital Co vs. Chengtun Mining Group
Performance |
| Timeline |
| Beijing Capital |
| Chengtun Mining Group |
Beijing Capital and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Capital and Chengtun Mining
The main advantage of trading using opposite Beijing Capital and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Capital 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.| Beijing Capital vs. Chengtun Mining Group | Beijing Capital vs. Sportsoul Co Ltd | Beijing Capital vs. Hainan Mining Co | Beijing Capital vs. Hefei Metalforming Mach |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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