Correlation Between Chengtun Mining and Great Sun
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By analyzing existing cross correlation between Chengtun Mining Group and Great Sun Foods Co, you can compare the effects of market volatilities on Chengtun Mining and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Great Sun.
Diversification Opportunities for Chengtun Mining and Great Sun
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chengtun and Great is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Great Sun go up and down completely randomly.
Pair Corralation between Chengtun Mining and Great Sun
Assuming the 90 days trading horizon Chengtun Mining is expected to generate 2.15 times less return on investment than Great Sun. But when comparing it to its historical volatility, Chengtun Mining Group is 1.58 times less risky than Great Sun. It trades about 0.12 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 318.00 in Great Sun Foods Co on September 5, 2024 and sell it today you would earn a total of 191.00 from holding Great Sun Foods Co or generate 60.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Great Sun Foods Co
Performance |
| Timeline |
| Chengtun Mining Group |
| Great Sun Foods |
Chengtun Mining and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Great Sun
The main advantage of trading using opposite Chengtun Mining and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun'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 |
| Great Sun vs. Poly Real Estate | Great Sun vs. China Vanke Co | Great Sun vs. China Merchants Shekou | Great Sun vs. Huafa Industrial 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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