Correlation Between Zhengzhou Coal and Tongling Nonferrous
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Zhengzhou Coal and Tongling Nonferrous 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 Coal with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Tongling Nonferrous.
Diversification Opportunities for Zhengzhou Coal and Tongling Nonferrous
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhengzhou and Tongling is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Zhengzhou Coal 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 Coal Mining are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Tongling Nonferrous
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to under-perform the Tongling Nonferrous. But the stock apears to be less risky and, when comparing its historical volatility, Zhengzhou Coal Mining is 1.14 times less risky than Tongling Nonferrous. The stock trades about -0.06 of its potential returns per unit of risk. The Tongling Nonferrous Metals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Tongling Nonferrous Metals on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Tongling Nonferrous Metals or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Tongling Nonferrous |
Zhengzhou Coal and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Tongling Nonferrous
The main advantage of trading using opposite Zhengzhou Coal and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Zhengzhou Coal vs. Guangdong Shenglu Telecommunication | Zhengzhou Coal vs. Zhongtong Guomai Communication | Zhengzhou Coal vs. Metallurgical of | Zhengzhou Coal vs. Xinjiang Communications Construction |
| Tongling Nonferrous vs. Zhejiang Kingland Pipeline | Tongling Nonferrous vs. Ningbo Construction Co | Tongling Nonferrous vs. GKHT Medical Technology | Tongling Nonferrous vs. Double Medical 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 Stocks Directory module to find actively traded stocks across global markets.
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