Correlation Between Sichuan Yahua and Zhengzhou Coal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Yahua Industrial and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Sichuan Yahua and Zhengzhou Coal 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 Sichuan Yahua with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Zhengzhou Coal.
Diversification Opportunities for Sichuan Yahua and Zhengzhou Coal
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Zhengzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Zhengzhou Coal
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.2 times more return on investment than Zhengzhou Coal. However, Sichuan Yahua is 1.2 times more volatile than Zhengzhou Coal Mining. It trades about 0.03 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about -0.03 per unit of risk. If you would invest 1,109 in Sichuan Yahua Industrial on August 25, 2024 and sell it today you would earn a total of 105.00 from holding Sichuan Yahua Industrial or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Zhengzhou Coal Mining |
Sichuan Yahua and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Zhengzhou Coal
The main advantage of trading using opposite Sichuan Yahua and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Sichuan Yahua vs. Changchun UP Optotech | Sichuan Yahua vs. Anhui Deli Household | Sichuan Yahua vs. Kangping Technology Co | Sichuan Yahua vs. CGN Nuclear Technology |
| Zhengzhou Coal vs. Sichuan Yahua Industrial | Zhengzhou Coal vs. Zhongyin Babi Food | Zhengzhou Coal vs. Beijing Sanyuan Foods | Zhengzhou Coal vs. Youyou Foods Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |