Correlation Between Chengtun Mining and HanS Laser
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By analyzing existing cross correlation between Chengtun Mining Group and HanS Laser Tech, you can compare the effects of market volatilities on Chengtun Mining and HanS Laser 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 HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and HanS Laser.
Diversification Opportunities for Chengtun Mining and HanS Laser
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengtun and HanS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech 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 HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and HanS Laser go up and down completely randomly.
Pair Corralation between Chengtun Mining and HanS Laser
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.95 times more return on investment than HanS Laser. However, Chengtun Mining Group is 1.05 times less risky than HanS Laser. It trades about 0.08 of its potential returns per unit of risk. HanS Laser Tech is currently generating about -0.03 per unit of risk. If you would invest 482.00 in Chengtun Mining Group on October 30, 2024 and sell it today you would earn a total of 24.00 from holding Chengtun Mining Group or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. HanS Laser Tech
Performance |
| Timeline |
| Chengtun Mining Group |
| HanS Laser Tech |
Chengtun Mining and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and HanS Laser
The main advantage of trading using opposite Chengtun Mining and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser'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 |
| HanS Laser vs. Guangdong Jingyi Metal | HanS Laser vs. North Copper Shanxi | HanS Laser vs. Uroica Mining Safety | HanS Laser vs. Northking Information Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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