Correlation Between Chengtun Mining and Shaanxi Energy
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By analyzing existing cross correlation between Chengtun Mining Group and Shaanxi Energy Investment, you can compare the effects of market volatilities on Chengtun Mining and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Shaanxi Energy.
Diversification Opportunities for Chengtun Mining and Shaanxi Energy
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Shaanxi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Chengtun Mining and Shaanxi Energy
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Shaanxi Energy. In addition to that, Chengtun Mining is 1.49 times more volatile than Shaanxi Energy Investment. It trades about -0.11 of its total potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.03 per unit of volatility. If you would invest 961.00 in Shaanxi Energy Investment on September 5, 2024 and sell it today you would earn a total of 6.00 from holding Shaanxi Energy Investment or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Chengtun Mining Group |
| Shaanxi Energy Investment |
Chengtun Mining and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Shaanxi Energy
The main advantage of trading using opposite Chengtun Mining and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy'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 |
| Shaanxi Energy vs. Hengli Petrochemical Co | Shaanxi Energy vs. Chenzhou Jingui Silver | Shaanxi Energy vs. Chengtun Mining Group | Shaanxi Energy vs. Jiangsu Financial Leasing |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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