Correlation Between Zhengzhou Coal and Iat Automobile
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Iat Automobile Technology, you can compare the effects of market volatilities on Zhengzhou Coal and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Iat Automobile.
Diversification Opportunities for Zhengzhou Coal and Iat Automobile
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Iat is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Iat Automobile go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Iat Automobile
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.53 times more return on investment than Iat Automobile. However, Zhengzhou Coal Mining is 1.87 times less risky than Iat Automobile. It trades about 0.03 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.01 per unit of risk. If you would invest 1,165 in Zhengzhou Coal Mining on September 15, 2024 and sell it today you would earn a total of 128.00 from holding Zhengzhou Coal Mining or generate 10.99% 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. Iat Automobile Technology
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Iat Automobile Technology |
Zhengzhou Coal and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Iat Automobile
The main advantage of trading using opposite Zhengzhou Coal and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| Zhengzhou Coal vs. Sanbo Hospital Management | Zhengzhou Coal vs. China National Software | Zhengzhou Coal vs. Beijing Yanjing Brewery | Zhengzhou Coal vs. Shanghai Rongtai Health |
| Iat Automobile vs. BeiGene | Iat Automobile vs. Kweichow Moutai Co | Iat Automobile vs. Beijing Roborock Technology | Iat Automobile vs. G bits Network Technology |
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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