Correlation Between Zhengzhou Coal and Jadard Technology
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By analyzing existing cross correlation between Zhengzhou Coal Mining and Jadard Technology A, you can compare the effects of market volatilities on Zhengzhou Coal and Jadard Technology 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 Jadard Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Jadard Technology.
Diversification Opportunities for Zhengzhou Coal and Jadard Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhengzhou and Jadard is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Jadard Technology A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadard Technology 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 Jadard Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadard Technology has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Jadard Technology go up and down completely randomly.
Pair Corralation between Zhengzhou Coal and Jadard Technology
Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to under-perform the Jadard Technology. But the stock apears to be less risky and, when comparing its historical volatility, Zhengzhou Coal Mining is 1.86 times less risky than Jadard Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Jadard Technology A is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,497 in Jadard Technology A on September 13, 2024 and sell it today you would lose (5.00) from holding Jadard Technology A or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhengzhou Coal Mining vs. Jadard Technology A
Performance |
| Timeline |
| Zhengzhou Coal Mining |
| Jadard Technology |
Zhengzhou Coal and Jadard Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Coal and Jadard Technology
The main advantage of trading using opposite Zhengzhou Coal and Jadard Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Jadard Technology 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 Jadard Technology will offset losses from the drop in Jadard Technology's long position.| Zhengzhou Coal vs. Guangdong Shenglu Telecommunication | Zhengzhou Coal vs. Zhongtong Guomai Communication | Zhengzhou Coal vs. Metallurgical of | Zhengzhou Coal vs. Xinjiang Communications Construction |
| Jadard Technology vs. Dr Peng Telecom | Jadard Technology vs. Zhengzhou Coal Mining | Jadard Technology vs. Shenzhen Kexin Communication | Jadard Technology vs. Guangdong Silvere Sci |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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