Correlation Between Longjian Road and Chengtun Mining
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By analyzing existing cross correlation between Longjian Road Bridge and Chengtun Mining Group, you can compare the effects of market volatilities on Longjian Road and Chengtun Mining 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 Longjian Road with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Chengtun Mining.
Diversification Opportunities for Longjian Road and Chengtun Mining
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Longjian and Chengtun is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Longjian Road i.e., Longjian Road and Chengtun Mining go up and down completely randomly.
Pair Corralation between Longjian Road and Chengtun Mining
Assuming the 90 days trading horizon Longjian Road Bridge is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Longjian Road Bridge is 1.01 times less risky than Chengtun Mining. The stock trades about -0.01 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Chengtun Mining Group on November 5, 2024 and sell it today you would earn a total of 34.00 from holding Chengtun Mining Group or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Chengtun Mining Group
Performance |
| Timeline |
| Longjian Road Bridge |
| Chengtun Mining Group |
Longjian Road and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Chengtun Mining
The main advantage of trading using opposite Longjian Road and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Longjian Road vs. Ningbo MedicalSystem Biotechnology | Longjian Road vs. Advanced Technology Materials | Longjian Road vs. Guangzhou Dongfang Hotel | Longjian Road vs. Jilin OLED Material |
| Chengtun Mining vs. Shuhua Sports Co | Chengtun Mining vs. 360 Security Technology | Chengtun Mining vs. Fiberhome Telecommunication Technologies | Chengtun Mining vs. Maxvision Technology Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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