Correlation Between Huaibei Mining and Chengtun Mining
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By analyzing existing cross correlation between Huaibei Mining Holdings and Chengtun Mining Group, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and Chengtun Mining.
Diversification Opportunities for Huaibei Mining and Chengtun Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Huaibei and Chengtun is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings 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 Huaibei 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and Chengtun Mining go up and down completely randomly.
Pair Corralation between Huaibei Mining and Chengtun Mining
Assuming the 90 days trading horizon Huaibei Mining Holdings is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Huaibei Mining Holdings is 1.36 times less risky than Chengtun Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Chengtun Mining Group on October 21, 2024 and sell it today you would earn a total of 54.00 from holding Chengtun Mining Group or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. Chengtun Mining Group
Performance |
| Timeline |
| Huaibei Mining Holdings |
| Chengtun Mining Group |
Huaibei Mining and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and Chengtun Mining
The main advantage of trading using opposite Huaibei Mining and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Shenzhen MYS Environmental | Huaibei Mining vs. Changjiang Jinggong Steel | Huaibei Mining vs. Sinocat Environmental Technology | Huaibei Mining vs. Tianjin Silvery Dragon |
| Chengtun Mining vs. Luyin Investment Group | Chengtun Mining vs. Beijing Mainstreets Investment | Chengtun Mining vs. Kunwu Jiuding Investment | Chengtun Mining vs. Jiangsu Yueda Investment |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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