Correlation Between Zhengzhou Coal and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhengzhou Coal Mining and Pengxin International Mining, you can compare the effects of market volatilities on Zhengzhou Coal and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Pengxin International.
Diversification Opportunities for Zhengzhou Coal and Pengxin International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhengzhou and Pengxin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Pengxin International go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Pengxin International
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.42 times more return on investment than Pengxin International. However, Zhengzhou Coal Mining is 2.38 times less risky than Pengxin International. It trades about 0.03 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.19 per unit of risk. If you would invest 1,306 in Zhengzhou Coal Mining on October 28, 2024 and sell it today you would earn a total of 11.00 from holding Zhengzhou Coal Mining or generate 0.84% 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. Pengxin International Mining
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Pengxin International |
Zhengzhou Coal and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Pengxin International
The main advantage of trading using opposite Zhengzhou Coal and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Zhengzhou Coal vs. Kweichow Moutai Co | Zhengzhou Coal vs. Contemporary Amperex Technology | Zhengzhou Coal vs. G bits Network Technology | Zhengzhou Coal vs. Beijing Roborock 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |