Correlation Between Chengtun Mining and Xiwang Foodstuffs
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By analyzing existing cross correlation between Chengtun Mining Group and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on Chengtun Mining and Xiwang Foodstuffs 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 Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Xiwang Foodstuffs.
Diversification Opportunities for Chengtun Mining and Xiwang Foodstuffs
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Xiwang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs 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 Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between Chengtun Mining and Xiwang Foodstuffs
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.47 times more return on investment than Xiwang Foodstuffs. However, Chengtun Mining Group is 2.11 times less risky than Xiwang Foodstuffs. It trades about -0.01 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about -0.3 per unit of risk. If you would invest 491.00 in Chengtun Mining Group on October 11, 2024 and sell it today you would lose (3.00) from holding Chengtun Mining Group or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Xiwang Foodstuffs |
Chengtun Mining and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Xiwang Foodstuffs
The main advantage of trading using opposite Chengtun Mining and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Xiwang Foodstuffs 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 Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| Chengtun Mining vs. Hunan Investment Group | Chengtun Mining vs. Holitech Technology Co | Chengtun Mining vs. Dhc Software Co | Chengtun Mining vs. Metro Investment Development |
| Xiwang Foodstuffs vs. Chengtun Mining Group | Xiwang Foodstuffs vs. Tibet Huayu Mining | Xiwang Foodstuffs vs. Zhengzhou Coal Mining | Xiwang Foodstuffs vs. Great Sun Foods Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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