Correlation Between Chengtun Mining and Aba Chemicals
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By analyzing existing cross correlation between Chengtun Mining Group and Aba Chemicals Corp, you can compare the effects of market volatilities on Chengtun Mining and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Aba Chemicals.
Diversification Opportunities for Chengtun Mining and Aba Chemicals
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Aba is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Aba Chemicals go up and down completely randomly.
Pair Corralation between Chengtun Mining and Aba Chemicals
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.81 times more return on investment than Aba Chemicals. However, Chengtun Mining Group is 1.23 times less risky than Aba Chemicals. It trades about 0.35 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.19 per unit of risk. If you would invest 466.00 in Chengtun Mining Group on October 23, 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 Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Chengtun Mining Group vs. Aba Chemicals Corp
Performance |
| Timeline |
| Chengtun Mining Group |
| Aba Chemicals Corp |
Chengtun Mining and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Aba Chemicals
The main advantage of trading using opposite Chengtun Mining and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Chengtun Mining vs. Easyhome New Retail | Chengtun Mining vs. Shenzhen Topway Video | Chengtun Mining vs. Guangzhou Dongfang Hotel | Chengtun Mining vs. Gansu Huangtai Wine marketing |
| Aba Chemicals vs. Guangzhou Haozhi Industrial | Aba Chemicals vs. Youyou Foods Co | Aba Chemicals vs. Chengtun Mining Group | Aba Chemicals vs. Xiamen Jihong Package |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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