Correlation Between Zhengzhou Coal and Gifore Agricultural
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Zhengzhou Coal and Gifore Agricultural 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 Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Gifore Agricultural.
Diversification Opportunities for Zhengzhou Coal and Gifore Agricultural
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhengzhou and Gifore is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural 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 Gifore Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gifore Agricultural has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Gifore Agricultural
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.3 times more return on investment than Gifore Agricultural. However, Zhengzhou Coal Mining is 3.39 times less risky than Gifore Agricultural. It trades about 0.03 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about -0.11 per unit of risk. If you would invest 1,300 in Zhengzhou Coal Mining on October 17, 2024 and sell it today you would earn a total of 9.00 from holding Zhengzhou Coal Mining or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Gifore Agricultural |
Zhengzhou Coal and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Gifore Agricultural
The main advantage of trading using opposite Zhengzhou Coal and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Gifore Agricultural 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 Gifore Agricultural will offset losses from the drop in Gifore Agricultural'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 |
| Gifore Agricultural vs. Zhongshan Public Utilities | Gifore Agricultural vs. Zhengzhou Coal Mining | Gifore Agricultural vs. Financial Street Holdings | Gifore Agricultural vs. Peoples Insurance of |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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