Correlation Between Guangzhou Haozhi and Zhengzhou Coal
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Guangzhou Haozhi 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 Guangzhou Haozhi with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Zhengzhou Coal.
Diversification Opportunities for Guangzhou Haozhi and Zhengzhou Coal
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Zhengzhou is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi 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 Guangzhou Haozhi 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 Guangzhou Haozhi 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 Guangzhou Haozhi i.e., Guangzhou Haozhi and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Zhengzhou Coal
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 2.67 times more return on investment than Zhengzhou Coal. However, Guangzhou Haozhi is 2.67 times more volatile than Zhengzhou Coal Mining. It trades about 0.22 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.12 per unit of risk. If you would invest 1,883 in Guangzhou Haozhi Industrial on November 3, 2024 and sell it today you would earn a total of 306.00 from holding Guangzhou Haozhi Industrial or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Zhengzhou Coal Mining |
Guangzhou Haozhi and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Zhengzhou Coal
The main advantage of trading using opposite Guangzhou Haozhi and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi 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.| Guangzhou Haozhi vs. Agricultural Bank of | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. Bank of China | Guangzhou Haozhi vs. PetroChina Co Ltd |
| Zhengzhou Coal vs. Ming Yang Smart | Zhengzhou Coal vs. 159681 | Zhengzhou Coal vs. 159005 | Zhengzhou Coal vs. Loctek Ergonomic Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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