Correlation Between Zhengzhou Coal and Sinomach General
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Sinomach General Machinery, you can compare the effects of market volatilities on Zhengzhou Coal and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Sinomach General.
Diversification Opportunities for Zhengzhou Coal and Sinomach General
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhengzhou and Sinomach is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Sinomach General go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Sinomach General
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.7 times more return on investment than Sinomach General. However, Zhengzhou Coal Mining is 1.43 times less risky than Sinomach General. It trades about 0.12 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.04 per unit of risk. If you would invest 1,277 in Zhengzhou Coal Mining on November 3, 2024 and sell it today you would earn a total of 41.00 from holding Zhengzhou Coal Mining or generate 3.21% 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. Sinomach General Machinery
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Sinomach General Mac |
Zhengzhou Coal and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Sinomach General
The main advantage of trading using opposite Zhengzhou Coal and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Zhengzhou Coal vs. Ming Yang Smart | Zhengzhou Coal vs. 159681 | Zhengzhou Coal vs. 159005 | Zhengzhou Coal vs. Loctek Ergonomic Technology |
| Sinomach General vs. Biwin Storage Technology | Sinomach General vs. Jinxiandai Information Industry | Sinomach General vs. Invengo Information Technology | Sinomach General vs. Zhongfu Information |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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