Correlation Between Northern United and Chengtun Mining
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By analyzing existing cross correlation between Northern United Publishing and Chengtun Mining Group, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Chengtun Mining.
Diversification Opportunities for Northern United and Chengtun Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and Chengtun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and Chengtun Mining go up and down completely randomly.
Pair Corralation between Northern United and Chengtun Mining
Assuming the 90 days trading horizon Northern United is expected to generate 1.35 times less return on investment than Chengtun Mining. But when comparing it to its historical volatility, Northern United Publishing is 1.44 times less risky than Chengtun Mining. It trades about 0.09 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Chengtun Mining Group on September 2, 2024 and sell it today you would earn a total of 124.00 from holding Chengtun Mining Group or generate 34.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. Chengtun Mining Group
Performance |
| Timeline |
| Northern United Publ |
| Chengtun Mining Group |
Northern United and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Chengtun Mining
The main advantage of trading using opposite Northern United and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Cambricon Technologies Corp | Northern United vs. Loongson Technology Corp | Northern United vs. Shenzhen Fortune Trend | Northern United vs. Chongqing Road Bridge |
| Chengtun Mining vs. Xiamen Jihong Package | Chengtun Mining vs. Sichuan Teway Food | Chengtun Mining vs. Haima Automobile Group | Chengtun Mining vs. Suzhou Weizhixiang Food |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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