Correlation Between Chengtun Mining and Yankershop Food
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By analyzing existing cross correlation between Chengtun Mining Group and Yankershop Food Co, you can compare the effects of market volatilities on Chengtun Mining and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Yankershop Food.
Diversification Opportunities for Chengtun Mining and Yankershop Food
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Yankershop is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Yankershop Food go up and down completely randomly.
Pair Corralation between Chengtun Mining and Yankershop Food
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.2 times more return on investment than Yankershop Food. However, Chengtun Mining is 1.2 times more volatile than Yankershop Food Co. It trades about 0.02 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.0 per unit of risk. If you would invest 466.00 in Chengtun Mining Group on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Chengtun Mining Group or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Yankershop Food Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Yankershop Food |
Chengtun Mining and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Yankershop Food
The main advantage of trading using opposite Chengtun Mining and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe Publishing |
| Yankershop Food vs. Guosheng Financial Holding | Yankershop Food vs. Xiamen Bank Co | Yankershop Food vs. Guangzhou Automobile Group | Yankershop Food vs. Zhejiang Qianjiang Motorcycle |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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