Correlation Between Shunfeng International and Chalice Mining

Can any of the company-specific risk be diversified away by investing in both Shunfeng International and Chalice Mining 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 Shunfeng International and Chalice Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shunfeng International Clean and Chalice Mining Limited, you can compare the effects of market volatilities on Shunfeng International and Chalice 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 Shunfeng International with a short position of Chalice Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shunfeng International and Chalice Mining.

Diversification Opportunities for Shunfeng International and Chalice Mining

0.0

Correlation Coefficient

Shunfeng International  Chalice Mining

Pay attention - limited upside

The 3 months correlation between Shunfeng and Chalice is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shunfeng International Clean and Chalice Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalice Mining and Shunfeng International 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 Shunfeng International Clean are associated (or correlated) with Chalice Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalice Mining has no effect on the direction of Shunfeng International i.e., Shunfeng International and Chalice Mining go up and down completely randomly.

Pair Corralation between Shunfeng International and Chalice Mining

If you would invest  58.00  in Chalice Mining Limited on April 23, 2025 and sell it today you would earn a total of  44.00  from holding Chalice Mining Limited or generate 75.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shunfeng International Clean  vs.  Chalice Mining Limited

Shunfeng International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shunfeng International Clean has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Shunfeng International is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Chalice Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chalice Mining Limited are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Chalice Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shunfeng International and Chalice Mining

The main advantage of trading using opposite Shunfeng International and Chalice Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shunfeng International position performs unexpectedly, Chalice 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 Chalice Mining will offset losses from the drop in Chalice Mining's long position.

The idea behind Shunfeng International Clean and Chalice Mining Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.