Correlation Between Zhengzhou Coal and Gotion High
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Gotion High tech, you can compare the effects of market volatilities on Zhengzhou Coal and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Gotion High.
Diversification Opportunities for Zhengzhou Coal and Gotion High
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhengzhou and Gotion is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Gotion High go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Gotion High
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.85 times more return on investment than Gotion High. However, Zhengzhou Coal Mining is 1.18 times less risky than Gotion High. It trades about 0.01 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.03 per unit of risk. If you would invest 1,269 in Zhengzhou Coal Mining on October 29, 2024 and sell it today you would earn a total of 48.00 from holding Zhengzhou Coal Mining or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Gotion High tech
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Gotion High tech |
Zhengzhou Coal and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Gotion High
The main advantage of trading using opposite Zhengzhou Coal and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| Zhengzhou Coal vs. Jiangnan Mould Plastic | Zhengzhou Coal vs. Jilin OLED Material | Zhengzhou Coal vs. Advanced Technology Materials | Zhengzhou Coal vs. Super Dragon Engineering Plastics |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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