Correlation Between Zhengzhou Coal and Changchun Faway
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Changchun Faway Automobile, you can compare the effects of market volatilities on Zhengzhou Coal and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Changchun Faway.
Diversification Opportunities for Zhengzhou Coal and Changchun Faway
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Changchun is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Changchun Faway go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Changchun Faway
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. Changchun Faway Automobile
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Changchun Faway Auto |
Zhengzhou Coal and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Changchun Faway
The main advantage of trading using opposite Zhengzhou Coal and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway'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 |
| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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