Correlation Between Hengxin Mobile and Zhengzhou Coal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengxin Mobile Business and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Hengxin Mobile 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 Hengxin Mobile with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengxin Mobile and Zhengzhou Coal.
Diversification Opportunities for Hengxin Mobile and Zhengzhou Coal
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hengxin and Zhengzhou is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hengxin Mobile Business 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 Hengxin Mobile 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 Hengxin Mobile Business 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 Hengxin Mobile i.e., Hengxin Mobile and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Hengxin Mobile and Zhengzhou Coal
Assuming the 90 days trading horizon Hengxin Mobile Business is expected to generate 2.46 times more return on investment than Zhengzhou Coal. However, Hengxin Mobile is 2.46 times more volatile than Zhengzhou Coal Mining. It trades about 0.02 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.02 per unit of risk. If you would invest 719.00 in Hengxin Mobile Business on October 19, 2024 and sell it today you would lose (4.00) from holding Hengxin Mobile Business or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengxin Mobile Business vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Hengxin Mobile Business |
| Zhengzhou Coal Mining |
Hengxin Mobile and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengxin Mobile and Zhengzhou Coal
The main advantage of trading using opposite Hengxin Mobile and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengxin Mobile 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.| Hengxin Mobile vs. Oppein Home Group | Hengxin Mobile vs. Zoy Home Furnishing | Hengxin Mobile vs. Hangzhou Guotai Environmental | Hengxin Mobile vs. Eit Environmental Development |
| Zhengzhou Coal vs. Huaxia Fund Management | Zhengzhou Coal vs. Baoshan Iron Steel | Zhengzhou Coal vs. Eit Environmental Development | Zhengzhou Coal vs. Shandong Polymer Biochemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |