Correlation Between Zhengzhou Coal and Citic Guoan
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Citic Guoan Wine, you can compare the effects of market volatilities on Zhengzhou Coal and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Citic Guoan.
Diversification Opportunities for Zhengzhou Coal and Citic Guoan
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhengzhou and Citic is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Citic Guoan go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Citic Guoan
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.66 times more return on investment than Citic Guoan. However, Zhengzhou Coal Mining is 1.52 times less risky than Citic Guoan. It trades about 0.02 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.04 per unit of risk. If you would invest 1,198 in Zhengzhou Coal Mining on October 16, 2024 and sell it today you would earn a total of 47.00 from holding Zhengzhou Coal Mining or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Citic Guoan Wine
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Citic Guoan Wine |
Zhengzhou Coal and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Citic Guoan
The main advantage of trading using opposite Zhengzhou Coal and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Zhengzhou Coal vs. Time Publishing and | Zhengzhou Coal vs. Kingsignal Technology Co | Zhengzhou Coal vs. Changjiang Publishing Media | Zhengzhou Coal vs. Beijing Shunxin Agriculture |
| Citic Guoan vs. Kuangda Technology Group | Citic Guoan vs. Zhengzhou Coal Mining | Citic Guoan vs. Beijing HuaYuanYiTong Thermal | Citic Guoan vs. Changchun UP Optotech |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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