Correlation Between Chahua Modern and Chengtun Mining
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By analyzing existing cross correlation between Chahua Modern Housewares and Chengtun Mining Group, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Chengtun Mining.
Diversification Opportunities for Chahua Modern and Chengtun Mining
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chahua and Chengtun is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Chengtun Mining go up and down completely randomly.
Pair Corralation between Chahua Modern and Chengtun Mining
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.85 times more return on investment than Chengtun Mining. However, Chahua Modern is 1.85 times more volatile than Chengtun Mining Group. It trades about 0.06 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.07 per unit of risk. If you would invest 2,160 in Chahua Modern Housewares on November 3, 2024 and sell it today you would earn a total of 126.00 from holding Chahua Modern Housewares or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Chengtun Mining Group
Performance |
| Timeline |
| Chahua Modern Housewares |
| Chengtun Mining Group |
Chahua Modern and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Chengtun Mining
The main advantage of trading using opposite Chahua Modern and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Yingde Greatchem Chemicals | Chahua Modern vs. Shandong Polymer Biochemicals | Chahua Modern vs. Shaanxi Meineng Clean | Chahua Modern vs. TongFu Microelectronics Co |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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