Correlation Between Jiangxi Naipu and Zhengzhou Coal
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Zhengzhou Coal.
Diversification Opportunities for Jiangxi Naipu and Zhengzhou Coal
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangxi and Zhengzhou is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining 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 Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Zhengzhou Coal
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 1.39 times more return on investment than Zhengzhou Coal. However, Jiangxi Naipu is 1.39 times more volatile than Zhengzhou Coal Mining. It trades about 0.08 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 2,057 in Jiangxi Naipu Mining on November 3, 2024 and sell it today you would earn a total of 530.00 from holding Jiangxi Naipu Mining or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Zhengzhou Coal Mining |
Jiangxi Naipu and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Zhengzhou Coal
The main advantage of trading using opposite Jiangxi Naipu and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Kweichow Moutai Co | Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. China Mobile Limited |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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