Correlation Between Zhengzhou Coal and Shenzhen Aisidi
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Zhengzhou Coal and Shenzhen Aisidi 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 Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Shenzhen Aisidi.
Diversification Opportunities for Zhengzhou Coal and Shenzhen Aisidi
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhengzhou and Shenzhen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Shenzhen Aisidi
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to under-perform the Shenzhen Aisidi. But the stock apears to be less risky and, when comparing its historical volatility, Zhengzhou Coal Mining is 2.58 times less risky than Shenzhen Aisidi. The stock trades about -0.06 of its potential returns per unit of risk. The Shenzhen Aisidi Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,656 in Shenzhen Aisidi Co on September 13, 2024 and sell it today you would lose (20.00) from holding Shenzhen Aisidi Co or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Shenzhen Aisidi |
Zhengzhou Coal and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Shenzhen Aisidi
The main advantage of trading using opposite Zhengzhou Coal and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Shenzhen Aisidi 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 Aisidi will offset losses from the drop in Shenzhen Aisidi's 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 |
| Shenzhen Aisidi vs. Railway Signal Communication | Shenzhen Aisidi vs. Guilin Seamild Foods | Shenzhen Aisidi vs. Shanghai Ziyan Foods | Shenzhen Aisidi vs. Youyou Foods Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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