Correlation Between Zhengzhou Coal and JuneYao Dairy
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By analyzing existing cross correlation between Zhengzhou Coal Mining and JuneYao Dairy Co, you can compare the effects of market volatilities on Zhengzhou Coal and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and JuneYao Dairy.
Diversification Opportunities for Zhengzhou Coal and JuneYao Dairy
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhengzhou and JuneYao is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and JuneYao Dairy
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.7 times more return on investment than JuneYao Dairy. However, Zhengzhou Coal Mining is 1.42 times less risky than JuneYao Dairy. It trades about 0.02 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.05 per unit of risk. If you would invest 1,173 in Zhengzhou Coal Mining on October 16, 2024 and sell it today you would earn a total of 72.00 from holding Zhengzhou Coal Mining or generate 6.14% 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. JuneYao Dairy Co
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| JuneYao Dairy |
Zhengzhou Coal and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and JuneYao Dairy
The main advantage of trading using opposite Zhengzhou Coal and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Zhengzhou Coal vs. Time Publishing and | Zhengzhou Coal vs. Kingsignal Technology Co | Zhengzhou Coal vs. Changjiang Publishing Media | Zhengzhou Coal vs. Beijing Shunxin Agriculture |
| JuneYao Dairy vs. Zhengzhou Coal Mining | JuneYao Dairy vs. Chengtun Mining Group | JuneYao Dairy vs. Hefei Metalforming Mach | JuneYao Dairy vs. Aurora Optoelectronics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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