Correlation Between Chengtun Mining and Masterwork Machinery
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By analyzing existing cross correlation between Chengtun Mining Group and Masterwork Machinery, you can compare the effects of market volatilities on Chengtun Mining and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Masterwork Machinery.
Diversification Opportunities for Chengtun Mining and Masterwork Machinery
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengtun and Masterwork is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Chengtun Mining and Masterwork Machinery
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.67 times more return on investment than Masterwork Machinery. However, Chengtun Mining Group is 1.5 times less risky than Masterwork Machinery. It trades about -0.02 of its potential returns per unit of risk. Masterwork Machinery is currently generating about -0.47 per unit of risk. If you would invest 494.00 in Chengtun Mining Group on October 12, 2024 and sell it today you would lose (6.00) from holding Chengtun Mining Group or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Masterwork Machinery
Performance |
| Timeline |
| Chengtun Mining Group |
| Masterwork Machinery |
Chengtun Mining and Masterwork Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Masterwork Machinery
The main advantage of trading using opposite Chengtun Mining and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery'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 |
| Masterwork Machinery vs. Guocheng Mining Co | Masterwork Machinery vs. Chengtun Mining Group | Masterwork Machinery vs. Suzhou Industrial Park | Masterwork Machinery vs. Guangzhou Haozhi Industrial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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