Correlation Between Chengtun Mining and China Minmetals
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By analyzing existing cross correlation between Chengtun Mining Group and China Minmetals Rare, you can compare the effects of market volatilities on Chengtun Mining and China Minmetals 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 China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and China Minmetals.
Diversification Opportunities for Chengtun Mining and China Minmetals
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare 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 China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and China Minmetals go up and down completely randomly.
Pair Corralation between Chengtun Mining and China Minmetals
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.62 times more return on investment than China Minmetals. However, Chengtun Mining Group is 1.6 times less risky than China Minmetals. It trades about -0.13 of its potential returns per unit of risk. China Minmetals Rare is currently generating about -0.13 per unit of risk. If you would invest 510.00 in Chengtun Mining Group on September 3, 2024 and sell it today you would lose (28.00) from holding Chengtun Mining Group or give up 5.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. China Minmetals Rare
Performance |
| Timeline |
| Chengtun Mining Group |
| China Minmetals Rare |
Chengtun Mining and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and China Minmetals
The main advantage of trading using opposite Chengtun Mining and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co | Chengtun Mining vs. Hoshine Silicon Ind |
| China Minmetals vs. China Resources Microelectronics | China Minmetals vs. China Mobile Limited | China Minmetals vs. China National Electric | China Minmetals vs. China International Travel |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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