Correlation Between Chengtun Mining and NBTM New
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By analyzing existing cross correlation between Chengtun Mining Group and NBTM New Materials, you can compare the effects of market volatilities on Chengtun Mining and NBTM New 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 NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and NBTM New.
Diversification Opportunities for Chengtun Mining and NBTM New
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengtun and NBTM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials 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 NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and NBTM New go up and down completely randomly.
Pair Corralation between Chengtun Mining and NBTM New
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 3.13 times less return on investment than NBTM New. But when comparing it to its historical volatility, Chengtun Mining Group is 1.47 times less risky than NBTM New. It trades about 0.02 of its potential returns per unit of risk. NBTM New Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,685 in NBTM New Materials on October 29, 2024 and sell it today you would earn a total of 36.00 from holding NBTM New Materials or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Chengtun Mining Group vs. NBTM New Materials
Performance |
| Timeline |
| Chengtun Mining Group |
| NBTM New Materials |
Chengtun Mining and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and NBTM New
The main advantage of trading using opposite Chengtun Mining and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| Chengtun Mining vs. China Satellite Communications | Chengtun Mining vs. Ningxia Younglight Chemicals | Chengtun Mining vs. BizConf Telecom Co | Chengtun Mining vs. Railway Signal Communication |
| NBTM New vs. Kweichow Moutai Co | NBTM New vs. Jiangsu Pacific Quartz | NBTM New vs. Shenzhen Transsion Holdings | NBTM New vs. Beijing Roborock Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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