Correlation Between Zhengzhou Coal and Nantong Haixing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhengzhou Coal Mining and Nantong Haixing Electronics, you can compare the effects of market volatilities on Zhengzhou Coal and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Nantong Haixing.
Diversification Opportunities for Zhengzhou Coal and Nantong Haixing
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhengzhou and Nantong is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Nantong Haixing go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Nantong Haixing
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.48 times more return on investment than Nantong Haixing. However, Zhengzhou Coal Mining is 2.09 times less risky than Nantong Haixing. It trades about -0.23 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.29 per unit of risk. If you would invest 1,300 in Zhengzhou Coal Mining on October 16, 2024 and sell it today you would lose (55.00) from holding Zhengzhou Coal Mining or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Nantong Haixing Elec |
Zhengzhou Coal and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Nantong Haixing
The main advantage of trading using opposite Zhengzhou Coal and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing'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 |
| Nantong Haixing vs. Sichuan Fulin Transportation | Nantong Haixing vs. GRIPM Advanced Materials | Nantong Haixing vs. Lander Sports Development | Nantong Haixing vs. Sportsoul Co Ltd |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |