Correlation Between Bolsa Mexicana and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both Bolsa Mexicana and Yanzhou Coal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bolsa Mexicana and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolsa Mexicana de and Yanzhou Coal Mining, you can compare the effects of market volatilities on Bolsa Mexicana and Yanzhou 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 Bolsa Mexicana with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolsa Mexicana and Yanzhou Coal.
Diversification Opportunities for Bolsa Mexicana and Yanzhou Coal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bolsa and Yanzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bolsa Mexicana de and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining and Bolsa Mexicana 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 Bolsa Mexicana de are associated (or correlated) with Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of Bolsa Mexicana i.e., Bolsa Mexicana and Yanzhou Coal go up and down completely randomly.
Pair Corralation between Bolsa Mexicana and Yanzhou Coal
Assuming the 90 days trading horizon Bolsa Mexicana de is expected to generate 1.38 times more return on investment than Yanzhou Coal. However, Bolsa Mexicana is 1.38 times more volatile than Yanzhou Coal Mining. It trades about -0.1 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about -0.24 per unit of risk. If you would invest 158.00 in Bolsa Mexicana de on October 24, 2024 and sell it today you would lose (8.00) from holding Bolsa Mexicana de or give up 5.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Bolsa Mexicana de vs. Yanzhou Coal Mining
Performance |
| Timeline |
| Bolsa Mexicana de |
| Yanzhou Coal Mining |
Bolsa Mexicana and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolsa Mexicana and Yanzhou Coal
The main advantage of trading using opposite Bolsa Mexicana and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolsa Mexicana position performs unexpectedly, Yanzhou 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.| Bolsa Mexicana vs. Renesas Electronics | Bolsa Mexicana vs. ELECTRONIC ARTS | Bolsa Mexicana vs. Delta Electronics Public | Bolsa Mexicana vs. Cars Inc |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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