Correlation Between Chengtun Mining and Fujian Nanwang
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By analyzing existing cross correlation between Chengtun Mining Group and Fujian Nanwang Environment, you can compare the effects of market volatilities on Chengtun Mining and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Fujian Nanwang.
Diversification Opportunities for Chengtun Mining and Fujian Nanwang
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Fujian is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Chengtun Mining and Fujian Nanwang
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.96 times more return on investment than Fujian Nanwang. However, Chengtun Mining Group is 1.04 times less risky than Fujian Nanwang. It trades about -0.01 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.05 per unit of risk. If you would invest 637.00 in Chengtun Mining Group on November 2, 2024 and sell it today you would lose (131.00) from holding Chengtun Mining Group or give up 20.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 83.09% |
| Values | Daily Returns |
Chengtun Mining Group vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Chengtun Mining Group |
| Fujian Nanwang Envir |
Chengtun Mining and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Fujian Nanwang
The main advantage of trading using opposite Chengtun Mining and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang'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 |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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