Correlation Between Chengtun Mining and SSAW Hotels
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By analyzing existing cross correlation between Chengtun Mining Group and SSAW Hotels Resorts, you can compare the effects of market volatilities on Chengtun Mining and SSAW Hotels 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 SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and SSAW Hotels.
Diversification Opportunities for Chengtun Mining and SSAW Hotels
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and SSAW is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts 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 SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and SSAW Hotels go up and down completely randomly.
Pair Corralation between Chengtun Mining and SSAW Hotels
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.49 times more return on investment than SSAW Hotels. However, Chengtun Mining Group is 2.05 times less risky than SSAW Hotels. It trades about 0.14 of its potential returns per unit of risk. SSAW Hotels Resorts is currently generating about -0.36 per unit of risk. If you would invest 474.00 in Chengtun Mining Group on October 17, 2024 and sell it today you would earn a total of 23.00 from holding Chengtun Mining Group or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. SSAW Hotels Resorts
Performance |
| Timeline |
| Chengtun Mining Group |
| SSAW Hotels Resorts |
Chengtun Mining and SSAW Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and SSAW Hotels
The main advantage of trading using opposite Chengtun Mining and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.| Chengtun Mining vs. Jinlong Machinery Electronic | Chengtun Mining vs. Fujian Anjoy Foods | Chengtun Mining vs. Eastroc Beverage Group | Chengtun Mining vs. Leyard Optoelectronic |
| SSAW Hotels vs. Tianshan Aluminum Group | SSAW Hotels vs. Chengtun Mining Group | SSAW Hotels vs. Anhui Tongguan Copper | SSAW Hotels vs. Hainan 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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