Correlation Between Chengtun Mining and Grinm Advanced
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By analyzing existing cross correlation between Chengtun Mining Group and Grinm Advanced Materials, you can compare the effects of market volatilities on Chengtun Mining and Grinm Advanced 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 Grinm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Grinm Advanced.
Diversification Opportunities for Chengtun Mining and Grinm Advanced
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengtun and Grinm is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Grinm Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grinm Advanced 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 Grinm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grinm Advanced Materials has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Grinm Advanced go up and down completely randomly.
Pair Corralation between Chengtun Mining and Grinm Advanced
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Grinm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 3.71 times less risky than Grinm Advanced. The stock trades about -0.1 of its potential returns per unit of risk. The Grinm Advanced Materials is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Grinm Advanced Materials on September 1, 2024 and sell it today you would earn a total of 1,097 from holding Grinm Advanced Materials or generate 95.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Grinm Advanced Materials
Performance |
| Timeline |
| Chengtun Mining Group |
| Grinm Advanced Materials |
Chengtun Mining and Grinm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Grinm Advanced
The main advantage of trading using opposite Chengtun Mining and Grinm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Grinm Advanced 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 Grinm Advanced will offset losses from the drop in Grinm Advanced's long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
| Grinm Advanced vs. Chengtun Mining Group | Grinm Advanced vs. Hengdian Entertainment Co | Grinm Advanced vs. Uroica Mining Safety | Grinm Advanced vs. Tibet Huayu 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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