Correlation Between SANOK RUBBER and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Yanzhou Coal 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 SANOK RUBBER and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Yanzhou Coal Mining, you can compare the effects of market volatilities on SANOK RUBBER and Yanzhou 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 SANOK RUBBER with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Yanzhou Coal.
Diversification Opportunities for SANOK RUBBER and Yanzhou Coal
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SANOK and Yanzhou is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Yanzhou Coal go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Yanzhou Coal
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 1.02 times more return on investment than Yanzhou Coal. However, SANOK RUBBER is 1.02 times more volatile than Yanzhou Coal Mining. It trades about 0.14 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about 0.0 per unit of risk. If you would invest 348.00 in SANOK RUBBER ZY on November 2, 2024 and sell it today you would earn a total of 172.00 from holding SANOK RUBBER ZY or generate 49.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. Yanzhou Coal Mining
Performance |
| Timeline |
| SANOK RUBBER ZY |
| Yanzhou Coal Mining |
SANOK RUBBER and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and Yanzhou Coal
The main advantage of trading using opposite SANOK RUBBER and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Yanzhou 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.| SANOK RUBBER vs. GALENA MINING LTD | SANOK RUBBER vs. CENTURIA OFFICE REIT | SANOK RUBBER vs. Harmony Gold Mining | SANOK RUBBER vs. FIREWEED METALS P |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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