Correlation Between STGEORGE MINING and Chengdu PUTIAN
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING and Chengdu PUTIAN at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining STGEORGE MINING and Chengdu PUTIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and Chengdu PUTIAN Telecommunications, you can compare the effects of market volatilities on STGEORGE MINING and Chengdu PUTIAN 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 STGEORGE MINING with a short position of Chengdu PUTIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and Chengdu PUTIAN.
Diversification Opportunities for STGEORGE MINING and Chengdu PUTIAN
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between STGEORGE and Chengdu is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD and Chengdu PUTIAN Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu PUTIAN Telec and STGEORGE MINING 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 STGEORGE MINING LTD are associated (or correlated) with Chengdu PUTIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu PUTIAN Telec has no effect on the direction of STGEORGE MINING i.e., STGEORGE MINING and Chengdu PUTIAN go up and down completely randomly.
Pair Corralation between STGEORGE MINING and Chengdu PUTIAN
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 1.65 times more return on investment than Chengdu PUTIAN. However, STGEORGE MINING is 1.65 times more volatile than Chengdu PUTIAN Telecommunications. It trades about 0.07 of its potential returns per unit of risk. Chengdu PUTIAN Telecommunications is currently generating about 0.05 per unit of risk. If you would invest 1.05 in STGEORGE MINING LTD on November 3, 2024 and sell it today you would earn a total of 0.20 from holding STGEORGE MINING LTD or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. Chengdu PUTIAN Telecommunicati
Performance |
| Timeline |
| STGEORGE MINING LTD |
| Chengdu PUTIAN Telec |
STGEORGE MINING and Chengdu PUTIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and Chengdu PUTIAN
The main advantage of trading using opposite STGEORGE MINING and Chengdu PUTIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING position performs unexpectedly, Chengdu PUTIAN 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 Chengdu PUTIAN will offset losses from the drop in Chengdu PUTIAN's long position.| STGEORGE MINING vs. Yuexiu Transport Infrastructure | STGEORGE MINING vs. ecotel communication ag | STGEORGE MINING vs. T MOBILE US | STGEORGE MINING vs. Spirent Communications plc |
| Chengdu PUTIAN vs. CARDINAL HEALTH | Chengdu PUTIAN vs. SENECA FOODS A | Chengdu PUTIAN vs. Universal Health Realty | Chengdu PUTIAN vs. Cal Maine Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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