Correlation Between Zhengzhou Coal and Chengtun Mining
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Chengtun Mining Group, you can compare the effects of market volatilities on Zhengzhou Coal 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 Zhengzhou Coal with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Chengtun Mining.
Diversification Opportunities for Zhengzhou Coal and Chengtun Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhengzhou and Chengtun is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining 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 Zhengzhou Coal 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 Zhengzhou Coal Mining 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 Zhengzhou Coal i.e., Zhengzhou Coal and Chengtun Mining go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Chengtun Mining
Assuming the 90 days trading horizon Zhengzhou Coal is expected to generate 5.01 times less return on investment than Chengtun Mining. But when comparing it to its historical volatility, Zhengzhou Coal Mining is 1.41 times less risky than Chengtun Mining. It trades about 0.03 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 481.00 in Chengtun Mining Group on October 28, 2024 and sell it today you would earn a total of 24.00 from holding Chengtun Mining Group or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Chengtun Mining Group
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Chengtun Mining Group |
Zhengzhou Coal and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Chengtun Mining
The main advantage of trading using opposite Zhengzhou Coal and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal 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.| Zhengzhou Coal vs. Jiangnan Mould Plastic | Zhengzhou Coal vs. Jilin OLED Material | Zhengzhou Coal vs. Advanced Technology Materials | Zhengzhou Coal vs. Super Dragon Engineering Plastics |
| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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