Correlation Between Zhengzhou Yutong and Hainan Mining
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By analyzing existing cross correlation between Zhengzhou Yutong Bus and Hainan Mining Co, you can compare the effects of market volatilities on Zhengzhou Yutong and Hainan Mining 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 Zhengzhou Yutong with a short position of Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Yutong and Hainan Mining.
Diversification Opportunities for Zhengzhou Yutong and Hainan Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Hainan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Yutong Bus and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining and Zhengzhou Yutong 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 Zhengzhou Yutong Bus are associated (or correlated) with Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Zhengzhou Yutong i.e., Zhengzhou Yutong and Hainan Mining go up and down completely randomly.
Pair Corralation between Zhengzhou Yutong and Hainan Mining
Assuming the 90 days trading horizon Zhengzhou Yutong Bus is expected to generate 1.1 times more return on investment than Hainan Mining. However, Zhengzhou Yutong is 1.1 times more volatile than Hainan Mining Co. It trades about 0.11 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.01 per unit of risk. If you would invest 723.00 in Zhengzhou Yutong Bus on September 3, 2024 and sell it today you would earn a total of 1,467 from holding Zhengzhou Yutong Bus or generate 202.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Yutong Bus vs. Hainan Mining Co
Performance |
| Timeline |
| Zhengzhou Yutong Bus |
| Hainan Mining |
Zhengzhou Yutong and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Yutong and Hainan Mining
The main advantage of trading using opposite Zhengzhou Yutong and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Yutong position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Zhengzhou Yutong vs. Hainan Mining Co | Zhengzhou Yutong vs. Pengxin International Mining | Zhengzhou Yutong vs. Iat Automobile Technology | Zhengzhou Yutong vs. Tianjin Silvery Dragon |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Hoshine Silicon Ind |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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