Correlation Between Chengtun Mining and Nantong Haixing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengtun Mining Group and Nantong Haixing Electronics, you can compare the effects of market volatilities on Chengtun Mining and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Nantong Haixing.
Diversification Opportunities for Chengtun Mining and Nantong Haixing
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengtun and Nantong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Nantong Haixing go up and down completely randomly.
Pair Corralation between Chengtun Mining and Nantong Haixing
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.29 times more return on investment than Nantong Haixing. However, Chengtun Mining is 1.29 times more volatile than Nantong Haixing Electronics. It trades about 0.06 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.06 per unit of risk. If you would invest 372.00 in Chengtun Mining Group on November 8, 2024 and sell it today you would earn a total of 123.00 from holding Chengtun Mining Group or generate 33.06% 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. Nantong Haixing Electronics
Performance |
| Timeline |
| Chengtun Mining Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nantong Haixing Elec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chengtun Mining and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Nantong Haixing
The main advantage of trading using opposite Chengtun Mining and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.The idea behind Chengtun Mining Group and Nantong Haixing Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |