Correlation Between Chengtun Mining and Guangdong Silvere
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengtun Mining Group and Guangdong Silvere Sci, you can compare the effects of market volatilities on Chengtun Mining and Guangdong Silvere 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 Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Guangdong Silvere.
Diversification Opportunities for Chengtun Mining and Guangdong Silvere
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Chengtun Mining and Guangdong Silvere
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 1.02 times less return on investment than Guangdong Silvere. But when comparing it to its historical volatility, Chengtun Mining Group is 1.7 times less risky than Guangdong Silvere. It trades about 0.24 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Guangdong Silvere Sci on September 12, 2024 and sell it today you would earn a total of 184.00 from holding Guangdong Silvere Sci or generate 35.94% 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. Guangdong Silvere Sci
Performance |
| Timeline |
| Chengtun Mining Group |
| Guangdong Silvere Sci |
Chengtun Mining and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Guangdong Silvere
The main advantage of trading using opposite Chengtun Mining and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Guangdong Silvere 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 Silvere will offset losses from the drop in Guangdong Silvere's long position.| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
| Guangdong Silvere vs. Beijing Mainstreets Investment | Guangdong Silvere vs. Shenzhen Centralcon Investment | Guangdong Silvere vs. China Asset Management | Guangdong Silvere vs. HeNan Splendor Science |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |