Correlation Between Chengtun Mining and XiaMen HongXin
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By analyzing existing cross correlation between Chengtun Mining Group and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Chengtun Mining and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and XiaMen HongXin.
Diversification Opportunities for Chengtun Mining and XiaMen HongXin
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and XiaMen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Chengtun Mining and XiaMen HongXin
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.35 times more return on investment than XiaMen HongXin. However, Chengtun Mining Group is 2.87 times less risky than XiaMen HongXin. It trades about 0.02 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about -0.08 per unit of risk. If you would invest 503.00 in Chengtun Mining Group on October 30, 2024 and sell it today you would earn a total of 3.00 from holding Chengtun Mining Group or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Chengtun Mining Group |
| XiaMen HongXin Electron |
Chengtun Mining and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and XiaMen HongXin
The main advantage of trading using opposite Chengtun Mining and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Chengtun Mining vs. China Satellite Communications | Chengtun Mining vs. Ningxia Younglight Chemicals | Chengtun Mining vs. BizConf Telecom Co | Chengtun Mining vs. Railway Signal Communication |
| XiaMen HongXin vs. Sportsoul Co Ltd | XiaMen HongXin vs. StarPower Semiconductor | XiaMen HongXin vs. Southchip Semiconductor Technology | XiaMen HongXin vs. Shannon Semiconductor Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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