Correlation Between Hainan Mining and Zhengzhou Coal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Hainan Mining and Zhengzhou Coal 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 Hainan Mining with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Zhengzhou Coal.
Diversification Opportunities for Hainan Mining and Zhengzhou Coal
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Zhengzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining and Hainan Mining 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 Hainan Mining Co are associated (or correlated) with Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Hainan Mining i.e., Hainan Mining and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Hainan Mining and Zhengzhou Coal
Assuming the 90 days trading horizon Hainan Mining is expected to generate 1.16 times less return on investment than Zhengzhou Coal. In addition to that, Hainan Mining is 1.14 times more volatile than Zhengzhou Coal Mining. It trades about 0.02 of its total potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.03 per unit of volatility. If you would invest 1,076 in Zhengzhou Coal Mining on September 14, 2024 and sell it today you would earn a total of 244.00 from holding Zhengzhou Coal Mining or generate 22.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Hainan Mining |
| Zhengzhou Coal Mining |
Hainan Mining and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Zhengzhou Coal
The main advantage of trading using opposite Hainan Mining and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Hainan Mining vs. Cowealth Medical China | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Jiangsu Yueda Investment | Hainan Mining vs. Hubei Geoway Investment |
| Zhengzhou Coal vs. Sanan Optoelectronics Co | Zhengzhou Coal vs. Tibet Huayu Mining | Zhengzhou Coal vs. Success Electronics | Zhengzhou Coal vs. Puyang Huicheng Electronic |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |