Correlation Between Chengtun Mining and North Huajin
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By analyzing existing cross correlation between Chengtun Mining Group and North Huajin Chemical, you can compare the effects of market volatilities on Chengtun Mining and North Huajin 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 Chengtun Mining with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and North Huajin.
Diversification Opportunities for Chengtun Mining and North Huajin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and North is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Chengtun Mining 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 Chengtun Mining Group are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and North Huajin go up and down completely randomly.
Pair Corralation between Chengtun Mining and North Huajin
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 1.25 times less return on investment than North Huajin. But when comparing it to its historical volatility, Chengtun Mining Group is 1.42 times less risky than North Huajin. It trades about 0.18 of its potential returns per unit of risk. North Huajin Chemical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 390.00 in North Huajin Chemical on September 2, 2024 and sell it today you would earn a total of 135.00 from holding North Huajin Chemical or generate 34.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. North Huajin Chemical
Performance |
| Timeline |
| Chengtun Mining Group |
| North Huajin Chemical |
Chengtun Mining and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and North Huajin
The main advantage of trading using opposite Chengtun Mining and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Chengtun Mining vs. Xiamen Jihong Package | Chengtun Mining vs. Sichuan Teway Food | Chengtun Mining vs. Haima Automobile Group | Chengtun Mining vs. Suzhou Weizhixiang Food |
| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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