Correlation Between Xiamen Goldenhome and Chengtun Mining
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Chengtun Mining Group, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Chengtun Mining.
Diversification Opportunities for Xiamen Goldenhome and Chengtun Mining
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiamen and Chengtun is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co 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 Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Chengtun Mining go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Chengtun Mining
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Chengtun Mining. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.07 times less risky than Chengtun Mining. The stock trades about -0.14 of its potential returns per unit of risk. The Chengtun Mining Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 466.00 in Chengtun Mining Group on October 26, 2024 and sell it today you would earn a total of 38.00 from holding Chengtun Mining Group or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Chengtun Mining Group
Performance |
| Timeline |
| Xiamen Goldenhome |
| Chengtun Mining Group |
Xiamen Goldenhome and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Chengtun Mining
The main advantage of trading using opposite Xiamen Goldenhome and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Ningbo Homelink Eco iTech | Xiamen Goldenhome vs. Everdisplay Optronics Shanghai | Xiamen Goldenhome vs. China Sports Industry | Xiamen Goldenhome vs. Qumei Furniture Group |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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