Correlation Between Chengtun Mining and Penyao Environmental
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By analyzing existing cross correlation between Chengtun Mining Group and Penyao Environmental Protection, you can compare the effects of market volatilities on Chengtun Mining and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Penyao Environmental.
Diversification Opportunities for Chengtun Mining and Penyao Environmental
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Penyao is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Penyao Environmental go up and down completely randomly.
Pair Corralation between Chengtun Mining and Penyao Environmental
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.76 times more return on investment than Penyao Environmental. However, Chengtun Mining Group is 1.32 times less risky than Penyao Environmental. It trades about 0.12 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.29 per unit of risk. If you would invest 487.00 in Chengtun Mining Group on November 2, 2024 and sell it today you would earn a total of 19.00 from holding Chengtun Mining Group or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Penyao Environmental Protectio
Performance |
| Timeline |
| Chengtun Mining Group |
| Penyao Environmental |
Chengtun Mining and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Penyao Environmental
The main advantage of trading using opposite Chengtun Mining and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Chengtun Mining vs. Touchstone International Medical | Chengtun Mining vs. Zhonghong Pulin Medical | Chengtun Mining vs. Zhongrun Resources Investment | Chengtun Mining vs. Allmed Medical Products |
| Penyao Environmental vs. Industrial and Commercial | Penyao Environmental vs. Kweichow Moutai Co | Penyao Environmental vs. Agricultural Bank of | Penyao Environmental vs. China Mobile Limited |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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