Correlation Between Zhengzhou Coal and Gree Real
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Gree Real Estate, you can compare the effects of market volatilities on Zhengzhou Coal and Gree Real 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 Gree Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Gree Real.
Diversification Opportunities for Zhengzhou Coal and Gree Real
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Gree is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Gree Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gree Real Estate 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 Gree Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gree Real Estate has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Gree Real go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Gree Real
Assuming the 90 days trading horizon Zhengzhou Coal is expected to generate 2.87 times less return on investment than Gree Real. But when comparing it to its historical volatility, Zhengzhou Coal Mining is 1.76 times less risky than Gree Real. It trades about 0.15 of its potential returns per unit of risk. Gree Real Estate is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 463.00 in Gree Real Estate on September 12, 2024 and sell it today you would earn a total of 325.00 from holding Gree Real Estate or generate 70.19% 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. Gree Real Estate
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Gree Real Estate |
Zhengzhou Coal and Gree Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Gree Real
The main advantage of trading using opposite Zhengzhou Coal and Gree Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Gree Real 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 Gree Real will offset losses from the drop in Gree Real's long position.| Zhengzhou Coal vs. Guangdong Shenglu Telecommunication | Zhengzhou Coal vs. Zhongtong Guomai Communication | Zhengzhou Coal vs. Metallurgical of | Zhengzhou Coal vs. Xinjiang Communications Construction |
| Gree Real vs. Lingyuan Iron Steel | Gree Real vs. Central Plains Environment | Gree Real vs. Dongjiang Environmental Co | Gree Real vs. Guangdong Jingyi Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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