Correlation Between Chengtun Mining and Cinda Securities
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By analyzing existing cross correlation between Chengtun Mining Group and Cinda Securities Co, you can compare the effects of market volatilities on Chengtun Mining and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Cinda Securities.
Diversification Opportunities for Chengtun Mining and Cinda Securities
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengtun and Cinda is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Cinda Securities go up and down completely randomly.
Pair Corralation between Chengtun Mining and Cinda Securities
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.79 times more return on investment than Cinda Securities. However, Chengtun Mining Group is 1.27 times less risky than Cinda Securities. It trades about 0.32 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.2 per unit of risk. If you would invest 470.00 in Chengtun Mining Group on October 25, 2024 and sell it today you would earn a total of 60.00 from holding Chengtun Mining Group or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Cinda Securities Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Cinda Securities |
Chengtun Mining and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Cinda Securities
The main advantage of trading using opposite Chengtun Mining and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co |
| Cinda Securities vs. Do Fluoride Chemicals Co | Cinda Securities vs. Shenzhen Noposion Agrochemicals | Cinda Securities vs. Aba Chemicals Corp | Cinda Securities vs. Lianhe Chemical Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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