Correlation Between Chengtun Mining and Kuang Chi
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By analyzing existing cross correlation between Chengtun Mining Group and Kuang Chi Technologies, you can compare the effects of market volatilities on Chengtun Mining and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Kuang Chi.
Diversification Opportunities for Chengtun Mining and Kuang Chi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Kuang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Kuang Chi go up and down completely randomly.
Pair Corralation between Chengtun Mining and Kuang Chi
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Kuang Chi. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 2.07 times less risky than Kuang Chi. The stock trades about -0.01 of its potential returns per unit of risk. The Kuang Chi Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,152 in Kuang Chi Technologies on October 11, 2024 and sell it today you would lose (29.00) from holding Kuang Chi Technologies or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Kuang Chi Technologies
Performance |
| Timeline |
| Chengtun Mining Group |
| Kuang Chi Technologies |
Chengtun Mining and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Kuang Chi
The main advantage of trading using opposite Chengtun Mining and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Chengtun Mining vs. Hunan Investment Group | Chengtun Mining vs. Holitech Technology Co | Chengtun Mining vs. Dhc Software Co | Chengtun Mining vs. Metro Investment Development |
| Kuang Chi vs. Chengtun Mining Group | Kuang Chi vs. Jiangxi Naipu Mining | Kuang Chi vs. Hainan Mining Co | Kuang Chi vs. Fujian Oriental Silver |
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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