Correlation Between Zhengzhou Coal and Jiangsu Hoperun
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Jiangsu Hoperun Software, you can compare the effects of market volatilities on Zhengzhou Coal and Jiangsu Hoperun 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 Jiangsu Hoperun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Jiangsu Hoperun.
Diversification Opportunities for Zhengzhou Coal and Jiangsu Hoperun
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Jiangsu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Jiangsu Hoperun Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Hoperun Software 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 Jiangsu Hoperun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Hoperun Software has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Jiangsu Hoperun go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Jiangsu Hoperun
Assuming the 90 days trading horizon Zhengzhou Coal is expected to generate 7.03 times less return on investment than Jiangsu Hoperun. But when comparing it to its historical volatility, Zhengzhou Coal Mining is 2.23 times less risky than Jiangsu Hoperun. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Hoperun Software is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,760 in Jiangsu Hoperun Software on September 14, 2024 and sell it today you would earn a total of 3,492 from holding Jiangsu Hoperun Software or generate 126.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Jiangsu Hoperun Software
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Jiangsu Hoperun Software |
Zhengzhou Coal and Jiangsu Hoperun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Jiangsu Hoperun
The main advantage of trading using opposite Zhengzhou Coal and Jiangsu Hoperun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Jiangsu Hoperun 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 Jiangsu Hoperun will offset losses from the drop in Jiangsu Hoperun's long position.| Zhengzhou Coal vs. Sanan Optoelectronics Co | Zhengzhou Coal vs. Tibet Huayu Mining | Zhengzhou Coal vs. Success Electronics | Zhengzhou Coal vs. Puyang Huicheng Electronic |
| Jiangsu Hoperun vs. Ligao Foods CoLtd | Jiangsu Hoperun vs. Peoples Insurance of | Jiangsu Hoperun vs. Guangdong Wens Foodstuff | Jiangsu Hoperun vs. Eastroc Beverage Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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