Correlation Between Chengtun Mining and Changjiang Publishing
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By analyzing existing cross correlation between Chengtun Mining Group and Changjiang Publishing Media, you can compare the effects of market volatilities on Chengtun Mining and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Changjiang Publishing.
Diversification Opportunities for Chengtun Mining and Changjiang Publishing
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Changjiang is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Chengtun Mining and Changjiang Publishing
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.15 times more return on investment than Changjiang Publishing. However, Chengtun Mining is 1.15 times more volatile than Changjiang Publishing Media. It trades about 0.12 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.13 per unit of risk. If you would invest 481.00 in Chengtun Mining Group on October 28, 2024 and sell it today you would earn a total of 24.00 from holding Chengtun Mining Group or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Changjiang Publishing Media
Performance |
| Timeline |
| Chengtun Mining Group |
| Changjiang Publishing |
Chengtun Mining and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Changjiang Publishing
The main advantage of trading using opposite Chengtun Mining and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing'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 |
| Changjiang Publishing vs. Kailong High Technology | Changjiang Publishing vs. Beijing Jiaman Dress | Changjiang Publishing vs. Heren Health Co | Changjiang Publishing vs. Shandong Sinoglory Health |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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