Correlation Between Suzhou Weizhixiang and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Suzhou Weizhixiang Food and Chengtun Mining Group, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Chengtun Mining.
Diversification Opportunities for Suzhou Weizhixiang and Chengtun Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suzhou and Chengtun is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Chengtun Mining go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Chengtun Mining
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 1.53 times more return on investment than Chengtun Mining. However, Suzhou Weizhixiang is 1.53 times more volatile than Chengtun Mining Group. It trades about 0.08 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.16 per unit of risk. If you would invest 2,150 in Suzhou Weizhixiang Food on August 27, 2024 and sell it today you would earn a total of 104.00 from holding Suzhou Weizhixiang Food or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Chengtun Mining Group
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Chengtun Mining Group |
Suzhou Weizhixiang and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Chengtun Mining
The main advantage of trading using opposite Suzhou Weizhixiang and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. China Petroleum Chemical | Suzhou Weizhixiang vs. PetroChina Co Ltd | Suzhou Weizhixiang vs. China State Construction | Suzhou Weizhixiang vs. China Railway 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |