Correlation Between Chengtun Mining and Guangdong Shenglu
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By analyzing existing cross correlation between Chengtun Mining Group and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Chengtun Mining and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Guangdong Shenglu.
Diversification Opportunities for Chengtun Mining and Guangdong Shenglu
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengtun and Guangdong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Chengtun Mining and Guangdong Shenglu
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 5.66 times less return on investment than Guangdong Shenglu. But when comparing it to its historical volatility, Chengtun Mining Group is 1.22 times less risky than Guangdong Shenglu. It trades about 0.01 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 531.00 in Guangdong Shenglu Telecommunication on October 18, 2024 and sell it today you would earn a total of 112.00 from holding Guangdong Shenglu Telecommunication or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Chengtun Mining Group |
| Guangdong Shenglu |
Chengtun Mining and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Guangdong Shenglu
The main advantage of trading using opposite Chengtun Mining and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu'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 |
| Guangdong Shenglu vs. Chengtun Mining Group | Guangdong Shenglu vs. Omnijoi Media Corp | Guangdong Shenglu vs. Soochow Suzhou Industrial | Guangdong Shenglu vs. Huayi Brothers Media |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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