Correlation Between Chengtun Mining and Hunan Valin
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By analyzing existing cross correlation between Chengtun Mining Group and Hunan Valin Steel, you can compare the effects of market volatilities on Chengtun Mining and Hunan Valin 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 Hunan Valin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Hunan Valin.
Diversification Opportunities for Chengtun Mining and Hunan Valin
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Hunan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Hunan Valin Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Valin Steel 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 Hunan Valin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Valin Steel has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Hunan Valin go up and down completely randomly.
Pair Corralation between Chengtun Mining and Hunan Valin
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.38 times more return on investment than Hunan Valin. However, Chengtun Mining is 1.38 times more volatile than Hunan Valin Steel. It trades about 0.03 of its potential returns per unit of risk. Hunan Valin Steel is currently generating about -0.01 per unit of risk. If you would invest 437.00 in Chengtun Mining Group on September 5, 2024 and sell it today you would earn a total of 48.00 from holding Chengtun Mining Group or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Hunan Valin Steel
Performance |
| Timeline |
| Chengtun Mining Group |
| Hunan Valin Steel |
Chengtun Mining and Hunan Valin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Hunan Valin
The main advantage of trading using opposite Chengtun Mining and Hunan Valin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Hunan Valin 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 Hunan Valin will offset losses from the drop in Hunan Valin's long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
| Hunan Valin vs. China World Trade | Hunan Valin vs. Guocheng Mining Co | Hunan Valin vs. Beijing HuaYuanYiTong Thermal | Hunan Valin vs. Chengtun Mining Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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