Correlation Between Chengtun Mining and Jiangsu Seagull
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By analyzing existing cross correlation between Chengtun Mining Group and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Chengtun Mining and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Jiangsu Seagull.
Diversification Opportunities for Chengtun Mining and Jiangsu Seagull
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengtun and Jiangsu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Chengtun Mining and Jiangsu Seagull
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 22.68 times less return on investment than Jiangsu Seagull. But when comparing it to its historical volatility, Chengtun Mining Group is 3.23 times less risky than Jiangsu Seagull. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Jiangsu Seagull Cooling on October 29, 2024 and sell it today you would earn a total of 153.00 from holding Jiangsu Seagull Cooling or generate 14.31% 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. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Chengtun Mining Group |
| Jiangsu Seagull Cooling |
Chengtun Mining and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Jiangsu Seagull
The main advantage of trading using opposite Chengtun Mining and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
| Jiangsu Seagull vs. China Asset Management | Jiangsu Seagull vs. Success Electronics | Jiangsu Seagull vs. Zhonghang Electronic Measuring | Jiangsu Seagull vs. TongFu Microelectronics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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