Correlation Between Chengtun Mining and Guangdong Tengen
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By analyzing existing cross correlation between Chengtun Mining Group and Guangdong Tengen Industrial, you can compare the effects of market volatilities on Chengtun Mining and Guangdong Tengen 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 Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Guangdong Tengen.
Diversification Opportunities for Chengtun Mining and Guangdong Tengen
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Guangdong is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind 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 Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Guangdong Tengen go up and down completely randomly.
Pair Corralation between Chengtun Mining and Guangdong Tengen
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.4 times more return on investment than Guangdong Tengen. However, Chengtun Mining Group is 2.51 times less risky than Guangdong Tengen. It trades about 0.35 of its potential returns per unit of risk. Guangdong Tengen Industrial is currently generating about 0.08 per unit of risk. If you would invest 466.00 in Chengtun Mining Group on October 24, 2024 and sell it today you would earn a total of 66.00 from holding Chengtun Mining Group or generate 14.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| Chengtun Mining Group |
| Guangdong Tengen Ind |
Chengtun Mining and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Guangdong Tengen
The main advantage of trading using opposite Chengtun Mining and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Guangdong Tengen 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 Tengen will offset losses from the drop in Guangdong Tengen's long position.| Chengtun Mining vs. Ningbo Fujia Industrial | Chengtun Mining vs. Sichuan Yahua Industrial | Chengtun Mining vs. Anhui Jinhe Industrial | Chengtun Mining vs. Zhengzhou Coal Mining |
| Guangdong Tengen vs. Chengtun Mining Group | Guangdong Tengen vs. Tibet Huayu Mining | Guangdong Tengen vs. Uroica Mining Safety | Guangdong Tengen vs. Aba Chemicals Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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