Correlation Between Chengtun Mining and Guangdong Wens
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By analyzing existing cross correlation between Chengtun Mining Group and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Chengtun Mining and Guangdong Wens 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 Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Guangdong Wens.
Diversification Opportunities for Chengtun Mining and Guangdong Wens
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengtun and Guangdong is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Guangdong Wens go up and down completely randomly.
Pair Corralation between Chengtun Mining and Guangdong Wens
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.56 times more return on investment than Guangdong Wens. However, Chengtun Mining is 1.56 times more volatile than Guangdong Wens Foodstuff. It trades about 0.35 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.19 per unit of risk. If you would invest 466.00 in Chengtun Mining Group on October 24, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Chengtun Mining Group |
| Guangdong Wens Foodstuff |
Chengtun Mining and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Guangdong Wens
The main advantage of trading using opposite Chengtun Mining and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Guangdong Wens 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 Wens will offset losses from the drop in Guangdong Wens' long position.| Chengtun Mining vs. Ningbo Fujia Industrial | Chengtun Mining vs. Sichuan Yahua Industrial | Chengtun Mining vs. Anhui Jinhe Industrial | Chengtun Mining vs. Zhengzhou Coal Mining |
| Guangdong Wens vs. Shandong Hongchuang Aluminum | Guangdong Wens vs. SSAW Hotels Resorts | Guangdong Wens vs. Sino Platinum Metals Co | Guangdong Wens vs. Beijing Kingsoft Office |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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