Correlation Between Chengtun Mining and Suzhou Douson
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By analyzing existing cross correlation between Chengtun Mining Group and Suzhou Douson Drilling, you can compare the effects of market volatilities on Chengtun Mining and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Suzhou Douson.
Diversification Opportunities for Chengtun Mining and Suzhou Douson
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and Suzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Suzhou Douson go up and down completely randomly.
Pair Corralation between Chengtun Mining and Suzhou Douson
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Suzhou Douson. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 1.18 times less risky than Suzhou Douson. The stock trades about -0.01 of its potential returns per unit of risk. The Suzhou Douson Drilling is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,441 in Suzhou Douson Drilling on August 29, 2024 and sell it today you would lose (285.00) from holding Suzhou Douson Drilling or give up 11.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chengtun Mining Group vs. Suzhou Douson Drilling
Performance |
Timeline |
Chengtun Mining Group |
Suzhou Douson Drilling |
Chengtun Mining and Suzhou Douson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengtun Mining and Suzhou Douson
The main advantage of trading using opposite Chengtun Mining and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.Chengtun Mining vs. Tianshan Aluminum Group | Chengtun Mining vs. Dalian Zeus Entertainment | Chengtun Mining vs. Focus Media Information | Chengtun Mining vs. Lander Sports Development |
Suzhou Douson vs. Zhejiang Kingland Pipeline | Suzhou Douson vs. Xiangyang Automobile Bearing | Suzhou Douson vs. COL Digital Publishing | Suzhou Douson vs. Suzhou Novoprotein Scientific |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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