Correlation Between Chengtun Mining and Gem Year
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By analyzing existing cross correlation between Chengtun Mining Group and Gem Year Industrial Co, you can compare the effects of market volatilities on Chengtun Mining and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Gem Year.
Diversification Opportunities for Chengtun Mining and Gem Year
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Gem is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Gem Year go up and down completely randomly.
Pair Corralation between Chengtun Mining and Gem Year
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.55 times more return on investment than Gem Year. However, Chengtun Mining Group is 1.82 times less risky than Gem Year. It trades about 0.05 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about -0.01 per unit of risk. If you would invest 475.00 in Chengtun Mining Group on September 28, 2024 and sell it today you would earn a total of 6.00 from holding Chengtun Mining Group or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chengtun Mining Group vs. Gem Year Industrial Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Gem Year Industrial |
Chengtun Mining and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Gem Year
The main advantage of trading using opposite Chengtun Mining and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Chengtun Mining vs. Malion New Materials | Chengtun Mining vs. Tibet Huayu Mining | Chengtun Mining vs. Hainan Mining Co | Chengtun Mining vs. Industrial Bank Co |
| Gem Year vs. Zhejiang Yayi Metal | Gem Year vs. Chengtun Mining Group | Gem Year vs. Huaibei Mining Holdings | Gem Year vs. Jinhui Mining 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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