Correlation Between Chengtun Mining and Allwin Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengtun Mining Group and Allwin Telecommunication Co, you can compare the effects of market volatilities on Chengtun Mining and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Allwin Telecommunicatio.
Diversification Opportunities for Chengtun Mining and Allwin Telecommunicatio
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Allwin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Chengtun Mining and Allwin Telecommunicatio
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.57 times more return on investment than Allwin Telecommunicatio. However, Chengtun Mining Group is 1.77 times less risky than Allwin Telecommunicatio. It trades about -0.15 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.15 per unit of risk. If you would invest 514.00 in Chengtun Mining Group on August 28, 2024 and sell it today you would lose (38.00) from holding Chengtun Mining Group or give up 7.39% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Allwin Telecommunicatio |
Chengtun Mining and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Allwin Telecommunicatio
The main advantage of trading using opposite Chengtun Mining and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Chengtun Mining vs. Tianshan Aluminum Group | Chengtun Mining vs. Dalian Zeus Entertainment | Chengtun Mining vs. Focus Media Information | Chengtun Mining vs. Lander Sports Development |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |