Correlation Between Chengtun Mining and Techshine Electronics
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By analyzing existing cross correlation between Chengtun Mining Group and Techshine Electronics Co, you can compare the effects of market volatilities on Chengtun Mining and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Techshine Electronics.
Diversification Opportunities for Chengtun Mining and Techshine Electronics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Techshine is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Techshine Electronics go up and down completely randomly.
Pair Corralation between Chengtun Mining and Techshine Electronics
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Techshine Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 1.31 times less risky than Techshine Electronics. The stock trades about 0.0 of its potential returns per unit of risk. The Techshine Electronics Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,744 in Techshine Electronics Co on September 12, 2024 and sell it today you would earn a total of 296.00 from holding Techshine Electronics Co or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Techshine Electronics Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Techshine Electronics |
Chengtun Mining and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Techshine Electronics
The main advantage of trading using opposite Chengtun Mining and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co |
| Techshine Electronics vs. Caihong Display Devices | Techshine Electronics vs. Chengdu Spaceon Electronics | Techshine Electronics vs. Chengtun Mining Group | Techshine Electronics vs. Shanghai Yaoji Playing |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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