Correlation Between CeoTronics and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both CeoTronics 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 CeoTronics and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and Yanzhou Coal Mining, you can compare the effects of market volatilities on CeoTronics 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 CeoTronics with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and Yanzhou Coal.
Diversification Opportunities for CeoTronics and Yanzhou Coal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CeoTronics and Yanzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG 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 CeoTronics 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 CeoTronics AG 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 CeoTronics i.e., CeoTronics and Yanzhou Coal go up and down completely randomly.
Pair Corralation between CeoTronics and Yanzhou Coal
Assuming the 90 days trading horizon CeoTronics is expected to generate 1.07 times less return on investment than Yanzhou Coal. But when comparing it to its historical volatility, CeoTronics AG is 1.6 times less risky than Yanzhou Coal. It trades about 0.05 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 897.00 in Yanzhou Coal Mining on September 13, 2024 and sell it today you would earn a total of 263.00 from holding Yanzhou Coal Mining or generate 29.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CeoTronics AG vs. Yanzhou Coal Mining
Performance |
| Timeline |
| CeoTronics AG |
| Yanzhou Coal Mining |
CeoTronics and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CeoTronics and Yanzhou Coal
The main advantage of trading using opposite CeoTronics and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics 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.| CeoTronics vs. Cisco Systems | CeoTronics vs. Nokia | CeoTronics vs. Hewlett Packard Enterprise | CeoTronics vs. Superior Plus Corp |
| Yanzhou Coal vs. Coor Service Management | Yanzhou Coal vs. Chuangs China Investments | Yanzhou Coal vs. Waste 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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