Correlation Between Kunwu Jiuding and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunwu Jiuding Investment and Chengtun Mining Group, you can compare the effects of market volatilities on Kunwu Jiuding 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 Kunwu Jiuding with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Chengtun Mining.
Diversification Opportunities for Kunwu Jiuding and Chengtun Mining
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Chengtun is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment 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 Kunwu Jiuding 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 Kunwu Jiuding Investment 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 Kunwu Jiuding i.e., Kunwu Jiuding and Chengtun Mining go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Chengtun Mining
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.38 times more return on investment than Chengtun Mining. However, Kunwu Jiuding is 1.38 times more volatile than Chengtun Mining Group. It trades about 0.04 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.02 per unit of risk. If you would invest 1,264 in Kunwu Jiuding Investment on August 31, 2024 and sell it today you would earn a total of 361.00 from holding Kunwu Jiuding Investment or generate 28.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Chengtun Mining Group
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Chengtun Mining Group |
Kunwu Jiuding and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Chengtun Mining
The main advantage of trading using opposite Kunwu Jiuding and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding 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.| Kunwu Jiuding vs. Kweichow Moutai Co | Kunwu Jiuding vs. Contemporary Amperex Technology | Kunwu Jiuding vs. G bits Network Technology | Kunwu Jiuding vs. BYD Co Ltd |
| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe Publishing |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |