Correlation Between Chengtun Mining and Anhui Jinhe
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By analyzing existing cross correlation between Chengtun Mining Group and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Chengtun Mining and Anhui Jinhe 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 Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Anhui Jinhe.
Diversification Opportunities for Chengtun Mining and Anhui Jinhe
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengtun and Anhui is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial 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 Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Chengtun Mining and Anhui Jinhe
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.25 times more return on investment than Anhui Jinhe. However, Chengtun Mining is 1.25 times more volatile than Anhui Jinhe Industrial. It trades about 0.16 of its potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.12 per unit of risk. If you would invest 474.00 in Chengtun Mining Group on October 17, 2024 and sell it today you would earn a total of 27.00 from holding Chengtun Mining Group or generate 5.7% 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. Anhui Jinhe Industrial
Performance |
| Timeline |
| Chengtun Mining Group |
| Anhui Jinhe Industrial |
Chengtun Mining and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Anhui Jinhe
The main advantage of trading using opposite Chengtun Mining and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Anhui Jinhe 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 Anhui Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Chengtun Mining vs. Jinlong Machinery Electronic | Chengtun Mining vs. Fujian Anjoy Foods | Chengtun Mining vs. Eastroc Beverage Group | Chengtun Mining vs. Leyard Optoelectronic |
| Anhui Jinhe vs. Rising Nonferrous Metals | Anhui Jinhe vs. Ningbo Jintian Copper | Anhui Jinhe vs. Xinjiang Baodi Mining | Anhui Jinhe vs. Chengtun Mining Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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