Correlation Between Chengtun Mining and Guangzhou KingTeller
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By analyzing existing cross correlation between Chengtun Mining Group and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Chengtun Mining and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Guangzhou KingTeller.
Diversification Opportunities for Chengtun Mining and Guangzhou KingTeller
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengtun and Guangzhou is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Chengtun Mining and Guangzhou KingTeller
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.38 times more return on investment than Guangzhou KingTeller. However, Chengtun Mining Group is 2.65 times less risky than Guangzhou KingTeller. It trades about -0.02 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.36 per unit of risk. If you would invest 494.00 in Chengtun Mining Group on October 12, 2024 and sell it today you would lose (6.00) from holding Chengtun Mining Group or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Chengtun Mining Group |
| Guangzhou KingTeller |
Chengtun Mining and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Guangzhou KingTeller
The main advantage of trading using opposite Chengtun Mining and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Chengtun Mining vs. Chongqing Changan Automobile | Chengtun Mining vs. Iat Automobile Technology | Chengtun Mining vs. Shenzhen Zhongzhuang Construction | Chengtun Mining vs. Hongrun Construction Group |
| Guangzhou KingTeller vs. Chengdu Kanghua Biological | Guangzhou KingTeller vs. Beijing Wantai Biological | Guangzhou KingTeller vs. Suzhou Novoprotein Scientific | Guangzhou KingTeller vs. Aluminum Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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