Correlation Between CNVISION MEDIA and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA 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 CNVISION MEDIA and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and Yanzhou Coal Mining, you can compare the effects of market volatilities on CNVISION MEDIA 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 CNVISION MEDIA with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and Yanzhou Coal.
Diversification Opportunities for CNVISION MEDIA and Yanzhou Coal
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CNVISION and Yanzhou is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA i.e., CNVISION MEDIA and Yanzhou Coal go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and Yanzhou Coal
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 1.2 times more return on investment than Yanzhou Coal. However, CNVISION MEDIA is 1.2 times more volatile than Yanzhou Coal Mining. It trades about 0.23 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about -0.1 per unit of risk. If you would invest 4.95 in CNVISION MEDIA on November 3, 2024 and sell it today you would earn a total of 1.25 from holding CNVISION MEDIA or generate 25.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. Yanzhou Coal Mining
Performance |
| Timeline |
| CNVISION MEDIA |
| Yanzhou Coal Mining |
CNVISION MEDIA and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and Yanzhou Coal
The main advantage of trading using opposite CNVISION MEDIA and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA 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.| CNVISION MEDIA vs. DEVRY EDUCATION GRP | CNVISION MEDIA vs. Renesas Electronics | CNVISION MEDIA vs. STORE ELECTRONIC | CNVISION MEDIA vs. CHINA EDUCATION GROUP |
| Yanzhou Coal vs. OPKO HEALTH | Yanzhou Coal vs. Commonwealth Bank of | Yanzhou Coal vs. Sims Metal Management | Yanzhou Coal vs. CeoTronics AG |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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