Correlation Between Contango ORE and Chagee Holdings

Can any of the company-specific risk be diversified away by investing in both Contango ORE and Chagee Holdings 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 Contango ORE and Chagee Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Contango ORE and Chagee Holdings Limited, you can compare the effects of market volatilities on Contango ORE and Chagee Holdings 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 Contango ORE with a short position of Chagee Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contango ORE and Chagee Holdings.

Diversification Opportunities for Contango ORE and Chagee Holdings

-0.12

Correlation Coefficient

Contango ORE  Chagee Holdings

Good diversification

The 3 months correlation between Contango and Chagee is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Contango ORE and Chagee Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chagee Holdings and Contango ORE 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 Contango ORE are associated (or correlated) with Chagee Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chagee Holdings has no effect on the direction of Contango ORE i.e., Contango ORE and Chagee Holdings go up and down completely randomly.

Pair Corralation between Contango ORE and Chagee Holdings

Given the investment horizon of 90 days Contango ORE is expected to generate 0.97 times more return on investment than Chagee Holdings. However, Contango ORE is 1.03 times less risky than Chagee Holdings. It trades about 0.19 of its potential returns per unit of risk. Chagee Holdings Limited is currently generating about -0.07 per unit of risk. If you would invest  1,321  in Contango ORE on May 13, 2025 and sell it today you would earn a total of  669.00  from holding Contango ORE or generate 50.64% return on investment over 90 days.

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

Contango ORE  vs.  Chagee Holdings Limited

Contango ORE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Contango ORE are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Contango ORE displayed solid returns over the last few months and may actually be approaching a breakup point.

Chagee Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Chagee Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Contango ORE and Chagee Holdings

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

The idea behind Contango ORE and Chagee Holdings 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.

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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.