Correlation Between Chengtun Mining and Dynagreen Environmental
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By analyzing existing cross correlation between Chengtun Mining Group and Dynagreen Environmental Protection, you can compare the effects of market volatilities on Chengtun Mining and Dynagreen Environmental 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 Dynagreen Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Dynagreen Environmental.
Diversification Opportunities for Chengtun Mining and Dynagreen Environmental
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Dynagreen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Dynagreen Environmental Protec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynagreen Environmental 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 Dynagreen Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynagreen Environmental has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Dynagreen Environmental go up and down completely randomly.
Pair Corralation between Chengtun Mining and Dynagreen Environmental
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.4 times more return on investment than Dynagreen Environmental. However, Chengtun Mining is 1.4 times more volatile than Dynagreen Environmental Protection. It trades about 0.08 of its potential returns per unit of risk. Dynagreen Environmental Protection is currently generating about -0.1 per unit of risk. If you would invest 482.00 in Chengtun Mining Group on October 30, 2024 and sell it today you would earn a total of 24.00 from holding Chengtun Mining Group or generate 4.98% 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. Dynagreen Environmental Protec
Performance |
| Timeline |
| Chengtun Mining Group |
| Dynagreen Environmental |
Chengtun Mining and Dynagreen Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Dynagreen Environmental
The main advantage of trading using opposite Chengtun Mining and Dynagreen Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Dynagreen Environmental 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 Dynagreen Environmental will offset losses from the drop in Dynagreen Environmental's long position.| Chengtun Mining vs. China Satellite Communications | Chengtun Mining vs. Ningxia Younglight Chemicals | Chengtun Mining vs. BizConf Telecom Co | Chengtun Mining vs. Railway Signal Communication |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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