Correlation Between Jiangsu Hoperun and Zhengzhou Coal
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Jiangsu Hoperun 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 Jiangsu Hoperun with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Zhengzhou Coal.
Diversification Opportunities for Jiangsu Hoperun and Zhengzhou Coal
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Zhengzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software 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 Jiangsu Hoperun 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 Jiangsu Hoperun Software 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 Jiangsu Hoperun i.e., Jiangsu Hoperun and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Zhengzhou Coal
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to generate 3.15 times more return on investment than Zhengzhou Coal. However, Jiangsu Hoperun is 3.15 times more volatile than Zhengzhou Coal Mining. It trades about 0.15 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.06 per unit of risk. If you would invest 1,931 in Jiangsu Hoperun Software on November 3, 2024 and sell it today you would earn a total of 2,851 from holding Jiangsu Hoperun Software or generate 147.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Zhengzhou Coal Mining |
Jiangsu Hoperun and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Zhengzhou Coal
The main advantage of trading using opposite Jiangsu Hoperun and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun 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.| Jiangsu Hoperun vs. Shandong Publishing Media | Jiangsu Hoperun vs. Xinhua Winshare Publishing | Jiangsu Hoperun vs. Everdisplay Optronics Shanghai | Jiangsu Hoperun vs. Duzhe Publishing Media |
| Zhengzhou Coal vs. GRINM Semiconductor Materials | Zhengzhou Coal vs. Beijing Mainstreets Investment | Zhengzhou Coal vs. Shenzhen Centralcon Investment | Zhengzhou Coal vs. Ingenic Semiconductor |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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