Correlation Between Zhengzhou Coal and Thinkingdom Media
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Thinkingdom Media Group, you can compare the effects of market volatilities on Zhengzhou Coal and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Thinkingdom Media.
Diversification Opportunities for Zhengzhou Coal and Thinkingdom Media
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhengzhou and Thinkingdom is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Thinkingdom Media
Assuming the 90 days trading horizon Zhengzhou Coal is expected to generate 1.48 times less return on investment than Thinkingdom Media. But when comparing it to its historical volatility, Zhengzhou Coal Mining is 1.46 times less risky than Thinkingdom Media. It trades about 0.02 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,954 in Thinkingdom Media Group on October 16, 2024 and sell it today you would earn a total of 53.00 from holding Thinkingdom Media Group or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Thinkingdom Media Group
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Thinkingdom Media |
Zhengzhou Coal and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Thinkingdom Media
The main advantage of trading using opposite Zhengzhou Coal and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Zhengzhou Coal vs. BYD Co Ltd | Zhengzhou Coal vs. China Mobile Limited | Zhengzhou Coal vs. Agricultural Bank of | Zhengzhou Coal vs. Industrial and Commercial |
| Thinkingdom Media vs. Konfoong Materials International | Thinkingdom Media vs. Shanghai Phichem Material | Thinkingdom Media vs. Healthcare Co | Thinkingdom Media vs. Zhejiang HISUN Biomaterials |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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