Correlation Between Circuit Fabology and Chengtun Mining
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By analyzing existing cross correlation between Circuit Fabology Microelectronics and Chengtun Mining Group, you can compare the effects of market volatilities on Circuit Fabology 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 Circuit Fabology with a short position of Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Circuit Fabology and Chengtun Mining.
Diversification Opportunities for Circuit Fabology and Chengtun Mining
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Circuit and Chengtun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Circuit Fabology Microelectron 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 Circuit Fabology 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 Circuit Fabology Microelectronics 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 Circuit Fabology i.e., Circuit Fabology and Chengtun Mining go up and down completely randomly.
Pair Corralation between Circuit Fabology and Chengtun Mining
Assuming the 90 days trading horizon Circuit Fabology is expected to generate 1.05 times less return on investment than Chengtun Mining. In addition to that, Circuit Fabology is 1.98 times more volatile than Chengtun Mining Group. It trades about 0.1 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.21 per unit of volatility. If you would invest 364.00 in Chengtun Mining Group on September 4, 2024 and sell it today you would earn a total of 122.00 from holding Chengtun Mining Group or generate 33.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Circuit Fabology Microelectron vs. Chengtun Mining Group
Performance |
| Timeline |
| Circuit Fabology Mic |
| Chengtun Mining Group |
Circuit Fabology and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Circuit Fabology and Chengtun Mining
The main advantage of trading using opposite Circuit Fabology and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Circuit Fabology 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.| Circuit Fabology vs. Chengtun Mining Group | Circuit Fabology vs. Gem Year Industrial Co | Circuit Fabology vs. Rising Nonferrous Metals | Circuit Fabology vs. Kingsignal Technology Co |
| Chengtun Mining vs. Dezhan HealthCare Co | Chengtun Mining vs. Kuangda Technology Group | Chengtun Mining vs. Soyea Technology Co | Chengtun Mining vs. Shanghai Rongtai Health |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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