Correlation Between Chengtun Mining and Shanghai Jin
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By analyzing existing cross correlation between Chengtun Mining Group and Shanghai Jin Jiang, you can compare the effects of market volatilities on Chengtun Mining and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Shanghai Jin.
Diversification Opportunities for Chengtun Mining and Shanghai Jin
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengtun and Shanghai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Shanghai Jin go up and down completely randomly.
Pair Corralation between Chengtun Mining and Shanghai Jin
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 1.55 times more return on investment than Shanghai Jin. However, Chengtun Mining is 1.55 times more volatile than Shanghai Jin Jiang. It trades about -0.01 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.03 per unit of risk. If you would invest 645.00 in Chengtun Mining Group on October 31, 2024 and sell it today you would lose (139.00) from holding Chengtun Mining Group or give up 21.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Chengtun Mining Group |
| Shanghai Jin Jiang |
Chengtun Mining and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Shanghai Jin
The main advantage of trading using opposite Chengtun Mining and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| Chengtun Mining vs. Changchun BCHT Biotechnology | Chengtun Mining vs. Liaoning Chengda Biotechnology | Chengtun Mining vs. Shandong Sanyuan Biotechnology | Chengtun Mining vs. Fujian Wanchen Biotechnology |
| Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. Contemporary Amperex Technology | Shanghai Jin vs. G bits Network Technology | Shanghai Jin vs. Beijing Roborock Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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