Correlation Between Zhengzhou Coal and Shenzhen MYS
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Zhengzhou Coal and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Shenzhen MYS.
Diversification Opportunities for Zhengzhou Coal and Shenzhen MYS
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhengzhou and Shenzhen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Shenzhen MYS
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.38 times more return on investment than Shenzhen MYS. However, Zhengzhou Coal Mining is 2.6 times less risky than Shenzhen MYS. It trades about 0.17 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about -0.01 per unit of risk. If you would invest 1,251 in Zhengzhou Coal Mining on September 28, 2024 and sell it today you would earn a total of 55.00 from holding Zhengzhou Coal Mining or generate 4.4% 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. Shenzhen MYS Environmental
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Shenzhen MYS Environ |
Zhengzhou Coal and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Shenzhen MYS
The main advantage of trading using opposite Zhengzhou Coal and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Zhengzhou Coal vs. Industrial and Commercial | Zhengzhou Coal vs. Agricultural Bank of | Zhengzhou Coal vs. China Construction Bank | Zhengzhou Coal vs. Bank of China |
| Shenzhen MYS vs. Guocheng Mining Co | Shenzhen MYS vs. Zhengzhou Coal Mining | Shenzhen MYS vs. Chenzhou Jingui Silver | Shenzhen MYS vs. Qingdao Hi Tech Moulds |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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