Correlation Between Chengtun Mining and Shandong Rike
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By analyzing existing cross correlation between Chengtun Mining Group and Shandong Rike Chemical, you can compare the effects of market volatilities on Chengtun Mining and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Shandong Rike.
Diversification Opportunities for Chengtun Mining and Shandong Rike
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Shandong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Shandong Rike go up and down completely randomly.
Pair Corralation between Chengtun Mining and Shandong Rike
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.5 times more return on investment than Shandong Rike. However, Chengtun Mining Group is 1.99 times less risky than Shandong Rike. It trades about -0.03 of its potential returns per unit of risk. Shandong Rike Chemical is currently generating about -0.13 per unit of risk. If you would invest 496.00 in Chengtun Mining Group on October 13, 2024 and sell it today you would lose (8.00) from holding Chengtun Mining Group or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chengtun Mining Group vs. Shandong Rike Chemical
Performance |
| Timeline |
| Chengtun Mining Group |
| Shandong Rike Chemical |
Chengtun Mining and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Shandong Rike
The main advantage of trading using opposite Chengtun Mining and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike's long position.| Chengtun Mining vs. Harbin Hatou Investment | Chengtun Mining vs. AVIC Fund Management | Chengtun Mining vs. China Asset Management | Chengtun Mining vs. Postal Savings Bank |
| Shandong Rike vs. Zijin Mining Group | Shandong Rike vs. Wanhua Chemical Group | Shandong Rike vs. Baoshan Iron Steel | Shandong Rike vs. Shandong Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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