Correlation Between Chengtun Mining and Jiangsu Yueda
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By analyzing existing cross correlation between Chengtun Mining Group and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Chengtun Mining and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Jiangsu Yueda.
Diversification Opportunities for Chengtun Mining and Jiangsu Yueda
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Chengtun Mining and Jiangsu Yueda
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 1.64 times less return on investment than Jiangsu Yueda. But when comparing it to its historical volatility, Chengtun Mining Group is 1.03 times less risky than Jiangsu Yueda. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 415.00 in Jiangsu Yueda Investment on August 31, 2024 and sell it today you would earn a total of 58.00 from holding Jiangsu Yueda Investment or generate 13.98% 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. Jiangsu Yueda Investment
Performance |
| Timeline |
| Chengtun Mining Group |
| Jiangsu Yueda Investment |
Chengtun Mining and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Jiangsu Yueda
The main advantage of trading using opposite Chengtun Mining and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Chengtun Mining vs. Northern United Publishing | Chengtun Mining vs. Dymatic Chemicals | Chengtun Mining vs. StarPower Semiconductor | Chengtun Mining vs. Chinese Universe Publishing |
| Jiangsu Yueda vs. Cultural Investment Holdings | Jiangsu Yueda vs. Gome Telecom Equipment | Jiangsu Yueda vs. Bus Online Co | Jiangsu Yueda vs. Holitech Technology Co |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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