Correlation Between Chengtun Mining and Qi An
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By analyzing existing cross correlation between Chengtun Mining Group and Qi An Xin, you can compare the effects of market volatilities on Chengtun Mining and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Qi An.
Diversification Opportunities for Chengtun Mining and Qi An
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengtun and 688561 is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Qi An go up and down completely randomly.
Pair Corralation between Chengtun Mining and Qi An
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.93 times more return on investment than Qi An. However, Chengtun Mining Group is 1.08 times less risky than Qi An. It trades about 0.02 of its potential returns per unit of risk. Qi An Xin is currently generating about -0.03 per unit of risk. If you would invest 470.00 in Chengtun Mining Group on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Chengtun Mining Group or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Qi An Xin
Performance |
| Timeline |
| Chengtun Mining Group |
| Qi An Xin |
Chengtun Mining and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Qi An
The main advantage of trading using opposite Chengtun Mining and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co |
| Qi An vs. Uroica Mining Safety | Qi An vs. Ningbo Fangzheng Automobile | Qi An vs. Changchun Faway Automobile | Qi An vs. Chengtun Mining Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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