Correlation Between Chengtun Mining and Ningbo Fujia
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By analyzing existing cross correlation between Chengtun Mining Group and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Chengtun Mining and Ningbo Fujia 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 Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Ningbo Fujia.
Diversification Opportunities for Chengtun Mining and Ningbo Fujia
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengtun and Ningbo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia 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 Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Chengtun Mining and Ningbo Fujia
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Ningbo Fujia. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 1.29 times less risky than Ningbo Fujia. The stock trades about -0.01 of its potential returns per unit of risk. The Ningbo Fujia Industrial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,189 in Ningbo Fujia Industrial on October 30, 2024 and sell it today you would earn a total of 286.00 from holding Ningbo Fujia Industrial or generate 24.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Chengtun Mining Group |
| Ningbo Fujia Industrial |
Chengtun Mining and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Ningbo Fujia
The main advantage of trading using opposite Chengtun Mining and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Ningbo Fujia 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 Ningbo Fujia will offset losses from the drop in Ningbo Fujia'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 |
| Ningbo Fujia vs. Nuode Investment Co | Ningbo Fujia vs. Jointo Energy Investment | Ningbo Fujia vs. Southern PublishingMedia Co | Ningbo Fujia vs. Hengdian Entertainment 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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