Correlation Between Chengtun Mining and Tieling Newcity
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By analyzing existing cross correlation between Chengtun Mining Group and Tieling Newcity Investment, you can compare the effects of market volatilities on Chengtun Mining and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Tieling Newcity.
Diversification Opportunities for Chengtun Mining and Tieling Newcity
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Tieling is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Tieling Newcity go up and down completely randomly.
Pair Corralation between Chengtun Mining and Tieling Newcity
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 3.1 times less return on investment than Tieling Newcity. But when comparing it to its historical volatility, Chengtun Mining Group is 1.36 times less risky than Tieling Newcity. It trades about 0.02 of its potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Tieling Newcity Investment on October 30, 2024 and sell it today you would earn a total of 7.00 from holding Tieling Newcity Investment or generate 2.33% 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. Tieling Newcity Investment
Performance |
| Timeline |
| Chengtun Mining Group |
| Tieling Newcity Inve |
Chengtun Mining and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Tieling Newcity
The main advantage of trading using opposite Chengtun Mining and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Chengtun Mining vs. China Satellite Communications | Chengtun Mining vs. Ningxia Younglight Chemicals | Chengtun Mining vs. BizConf Telecom Co | Chengtun Mining vs. Railway Signal Communication |
| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China | Tieling Newcity vs. Agricultural Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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