Correlation Between Chengtun Mining and Qingdao Choho
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By analyzing existing cross correlation between Chengtun Mining Group and Qingdao Choho Industrial, you can compare the effects of market volatilities on Chengtun Mining and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Qingdao Choho.
Diversification Opportunities for Chengtun Mining and Qingdao Choho
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Qingdao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Qingdao Choho go up and down completely randomly.
Pair Corralation between Chengtun Mining and Qingdao Choho
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Qingdao Choho. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 1.17 times less risky than Qingdao Choho. The stock trades about -0.13 of its potential returns per unit of risk. The Qingdao Choho Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,698 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Qingdao Choho Industrial or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Chengtun Mining Group |
| Qingdao Choho Industrial |
Chengtun Mining and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Qingdao Choho
The main advantage of trading using opposite Chengtun Mining and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co | Chengtun Mining vs. Hoshine Silicon Ind |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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