Correlation Between Chengtun Mining and Sunny Loan
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By analyzing existing cross correlation between Chengtun Mining Group and Sunny Loan Top, you can compare the effects of market volatilities on Chengtun Mining and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Sunny Loan.
Diversification Opportunities for Chengtun Mining and Sunny Loan
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Sunny is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Sunny Loan go up and down completely randomly.
Pair Corralation between Chengtun Mining and Sunny Loan
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Sunny Loan. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 2.42 times less risky than Sunny Loan. The stock trades about -0.06 of its potential returns per unit of risk. The Sunny Loan Top is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 931.00 in Sunny Loan Top on December 1, 2024 and sell it today you would lose (9.00) from holding Sunny Loan Top or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Sunny Loan Top
Performance |
| Timeline |
| Chengtun Mining Group |
| Sunny Loan Top |
Chengtun Mining and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Sunny Loan
The main advantage of trading using opposite Chengtun Mining and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Chengtun Mining vs. Zhangjiagang Elegant Home | Chengtun Mining vs. Nanxing Furniture Machinery | Chengtun Mining vs. Beijing Kingsoft Office | Chengtun Mining vs. Huatian Hotel Group |
| Sunny Loan vs. Air China Ltd | Sunny Loan vs. Beijing Kaiwen Education | Sunny Loan vs. Zhejiang Publishing Media | Sunny Loan vs. COL Digital Publishing |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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