Correlation Between Chengtun Mining and Huasi Agricultural
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By analyzing existing cross correlation between Chengtun Mining Group and Huasi Agricultural Development, you can compare the effects of market volatilities on Chengtun Mining and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Huasi Agricultural.
Diversification Opportunities for Chengtun Mining and Huasi Agricultural
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Huasi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Chengtun Mining and Huasi Agricultural
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 3.28 times less return on investment than Huasi Agricultural. But when comparing it to its historical volatility, Chengtun Mining Group is 1.14 times less risky than Huasi Agricultural. It trades about 0.0 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Huasi Agricultural Development on August 26, 2024 and sell it today you would lose (59.00) from holding Huasi Agricultural Development or give up 12.77% 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. Huasi Agricultural Development
Performance |
| Timeline |
| Chengtun Mining Group |
| Huasi Agricultural |
Chengtun Mining and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Huasi Agricultural
The main advantage of trading using opposite Chengtun Mining and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural'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 |
| Huasi Agricultural vs. Chengtun Mining Group | Huasi Agricultural vs. China Satellite Communications | Huasi Agricultural vs. Xinjiang Baodi Mining | Huasi Agricultural vs. Uroica Mining Safety |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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