Correlation Between Chengtun Mining and Hainan Mining
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By analyzing existing cross correlation between Chengtun Mining Group and Hainan Mining Co, you can compare the effects of market volatilities on Chengtun Mining and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Hainan Mining.
Diversification Opportunities for Chengtun Mining and Hainan Mining
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengtun and Hainan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Hainan Mining go up and down completely randomly.
Pair Corralation between Chengtun Mining and Hainan Mining
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Hainan Mining. In addition to that, Chengtun Mining is 1.14 times more volatile than Hainan Mining Co. It trades about -0.01 of its total potential returns per unit of risk. Hainan Mining Co is currently generating about 0.0 per unit of volatility. If you would invest 772.00 in Hainan Mining Co on November 2, 2024 and sell it today you would lose (94.00) from holding Hainan Mining Co or give up 12.18% 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. Hainan Mining Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Hainan Mining |
Chengtun Mining and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Hainan Mining
The main advantage of trading using opposite Chengtun Mining and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Chengtun Mining vs. Touchstone International Medical | Chengtun Mining vs. Zhonghong Pulin Medical | Chengtun Mining vs. Zhongrun Resources Investment | Chengtun Mining vs. Allmed Medical Products |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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