Correlation Between Chengtun Mining and Wanhua Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengtun Mining Group and Wanhua Chemical Group, you can compare the effects of market volatilities on Chengtun Mining and Wanhua Chemical 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 Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Wanhua Chemical.
Diversification Opportunities for Chengtun Mining and Wanhua Chemical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Wanhua is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group 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 Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Chengtun Mining and Wanhua Chemical
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.53 times more return on investment than Wanhua Chemical. However, Chengtun Mining is 1.53 times more volatile than Wanhua Chemical Group. It trades about -0.01 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.04 per unit of risk. If you would invest 613.00 in Chengtun Mining Group on November 27, 2024 and sell it today you would lose (124.00) from holding Chengtun Mining Group or give up 20.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Wanhua Chemical Group
Performance |
| Timeline |
| Chengtun Mining Group |
| Wanhua Chemical Group |
Chengtun Mining and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Wanhua Chemical
The main advantage of trading using opposite Chengtun Mining and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| Chengtun Mining vs. Thunder Software Technology | Chengtun Mining vs. Tianshan Aluminum Group | Chengtun Mining vs. Anhui Gujing Distillery | Chengtun Mining vs. Queclink Wireless Solutions |
| Wanhua Chemical vs. Anhui Huaheng Biotechnology | Wanhua Chemical vs. Zhangjiagang Freetrade Science | Wanhua Chemical vs. Fujian Wanchen Biotechnology | Wanhua Chemical vs. JCHX Mining Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |