Correlation Between Zhengzhou Coal and BeiGene
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By analyzing existing cross correlation between Zhengzhou Coal Mining and BeiGene, you can compare the effects of market volatilities on Zhengzhou Coal and BeiGene 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 BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and BeiGene.
Diversification Opportunities for Zhengzhou Coal and BeiGene
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhengzhou and BeiGene is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene 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 BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and BeiGene go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and BeiGene
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to under-perform the BeiGene. But the stock apears to be less risky and, when comparing its historical volatility, Zhengzhou Coal Mining is 1.69 times less risky than BeiGene. The stock trades about -0.02 of its potential returns per unit of risk. The BeiGene is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 16,100 in BeiGene on October 24, 2024 and sell it today you would earn a total of 2,878 from holding BeiGene or generate 17.88% 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. BeiGene
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| BeiGene |
Zhengzhou Coal and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and BeiGene
The main advantage of trading using opposite Zhengzhou Coal and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Zhengzhou Coal vs. Guangzhou Haozhi Industrial | Zhengzhou Coal vs. Ningbo Fujia Industrial | Zhengzhou Coal vs. Peoples Insurance of | Zhengzhou Coal vs. Hengli Industrial Development |
| BeiGene vs. Fibocom Wireless | BeiGene vs. Beijing Kingsoft Office | BeiGene vs. Southern PublishingMedia Co | BeiGene vs. Guangzhou Jinyi Media |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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