Correlation Between Zhengzhou Coal and Bank of Suzhou
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Bank of Suzhou, you can compare the effects of market volatilities on Zhengzhou Coal and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Bank of Suzhou.
Diversification Opportunities for Zhengzhou Coal and Bank of Suzhou
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhengzhou and Bank is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Bank of Suzhou go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Bank of Suzhou
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to under-perform the Bank of Suzhou. In addition to that, Zhengzhou Coal is 1.35 times more volatile than Bank of Suzhou. It trades about -0.04 of its total potential returns per unit of risk. Bank of Suzhou is currently generating about 0.05 per unit of volatility. If you would invest 712.00 in Bank of Suzhou on October 17, 2024 and sell it today you would earn a total of 79.00 from holding Bank of Suzhou or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Bank of Suzhou
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Bank of Suzhou |
Zhengzhou Coal and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Bank of Suzhou
The main advantage of trading using opposite Zhengzhou Coal and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| Zhengzhou Coal vs. Miracll Chemicals Co | Zhengzhou Coal vs. Dymatic Chemicals | Zhengzhou Coal vs. Shenzhen Noposion Agrochemicals | Zhengzhou Coal vs. Yingde Greatchem Chemicals |
| Bank of Suzhou vs. Zhengzhou Coal Mining | Bank of Suzhou vs. Ye Chiu Metal | Bank of Suzhou vs. Anhui Jinhe Industrial | Bank of Suzhou vs. Pengxin International Mining |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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