Correlation Between Chengtun Mining and Wuhan Hvsen
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By analyzing existing cross correlation between Chengtun Mining Group and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Chengtun Mining and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Wuhan Hvsen.
Diversification Opportunities for Chengtun Mining and Wuhan Hvsen
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Wuhan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Chengtun Mining and Wuhan Hvsen
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.91 times more return on investment than Wuhan Hvsen. However, Chengtun Mining Group is 1.1 times less risky than Wuhan Hvsen. It trades about -0.01 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 579.00 in Chengtun Mining Group on August 29, 2024 and sell it today you would lose (105.00) from holding Chengtun Mining Group or give up 18.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Chengtun Mining Group |
| Wuhan Hvsen Biotechnology |
Chengtun Mining and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Wuhan Hvsen
The main advantage of trading using opposite Chengtun Mining and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Chengtun Mining vs. Tianshan Aluminum Group | Chengtun Mining vs. Dalian Zeus Entertainment | Chengtun Mining vs. Focus Media Information | Chengtun Mining vs. Lander Sports Development |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. Bank of China |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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