Correlation Between Chengtun Mining and Huali Industrial
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By analyzing existing cross correlation between Chengtun Mining Group and Huali Industrial Group, you can compare the effects of market volatilities on Chengtun Mining and Huali Industrial 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 Huali Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Huali Industrial.
Diversification Opportunities for Chengtun Mining and Huali Industrial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Huali is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Huali Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huali Industrial 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 Huali Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huali Industrial has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Huali Industrial go up and down completely randomly.
Pair Corralation between Chengtun Mining and Huali Industrial
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Huali Industrial. In addition to that, Chengtun Mining is 1.07 times more volatile than Huali Industrial Group. It trades about 0.0 of its total potential returns per unit of risk. Huali Industrial Group is currently generating about 0.04 per unit of volatility. If you would invest 5,631 in Huali Industrial Group on September 13, 2024 and sell it today you would earn a total of 2,046 from holding Huali Industrial Group or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chengtun Mining Group vs. Huali Industrial Group
Performance |
| Timeline |
| Chengtun Mining Group |
| Huali Industrial |
Chengtun Mining and Huali Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Huali Industrial
The main advantage of trading using opposite Chengtun Mining and Huali Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Huali Industrial 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 Huali Industrial will offset losses from the drop in Huali Industrial's long position.| Chengtun Mining vs. Bengang Steel Plates | Chengtun Mining vs. Shenzhen MYS Environmental | Chengtun Mining vs. Central Plains Environment | Chengtun Mining vs. Jiangsu Yanghe Brewery |
| Huali Industrial vs. Tibet Huayu Mining | Huali Industrial vs. Huaibei Mining Holdings | Huali Industrial vs. Chengtun Mining Group | Huali Industrial vs. Guocheng Mining Co |
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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