Correlation Between Chengtun Mining and Changchun High
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By analyzing existing cross correlation between Chengtun Mining Group and Changchun High New, you can compare the effects of market volatilities on Chengtun Mining and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Changchun High.
Diversification Opportunities for Chengtun Mining and Changchun High
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengtun and Changchun is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Changchun High go up and down completely randomly.
Pair Corralation between Chengtun Mining and Changchun High
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.33 times more return on investment than Changchun High. However, Chengtun Mining is 1.33 times more volatile than Changchun High New. It trades about 0.02 of its potential returns per unit of risk. Changchun High New is currently generating about -0.03 per unit of risk. If you would invest 478.00 in Chengtun Mining Group on November 7, 2024 and sell it today you would earn a total of 28.00 from holding Chengtun Mining Group or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Changchun High New
Performance |
| Timeline |
| Chengtun Mining Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Changchun High New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chengtun Mining and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Changchun High
The main advantage of trading using opposite Chengtun Mining and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.The idea behind Chengtun Mining Group and Changchun High New pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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