Correlation Between Zhengzhou Coal and Xinhua Winshare
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Zhengzhou Coal and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Xinhua Winshare.
Diversification Opportunities for Zhengzhou Coal and Xinhua Winshare
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhengzhou and Xinhua is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Xinhua Winshare
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 1.07 times more return on investment than Xinhua Winshare. However, Zhengzhou Coal is 1.07 times more volatile than Xinhua Winshare Publishing. It trades about 0.03 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.23 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Xinhua Winshare Publ |
Zhengzhou Coal and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Xinhua Winshare
The main advantage of trading using opposite Zhengzhou Coal and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare'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 |
| Xinhua Winshare vs. Anhui Fuhuang Steel | Xinhua Winshare vs. Shenzhen MYS Environmental | Xinhua Winshare vs. Tongxing Environmental Protection | Xinhua Winshare vs. Tsingtao Brewery Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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