Correlation Between UET United and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both UET United 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 UET United and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UET United Electronic and Yanzhou Coal Mining, you can compare the effects of market volatilities on UET United 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 UET United with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and Yanzhou Coal.
Diversification Opportunities for UET United and Yanzhou Coal
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UET and Yanzhou is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic 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 UET United 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 UET United Electronic 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 UET United i.e., UET United and Yanzhou Coal go up and down completely randomly.
Pair Corralation between UET United and Yanzhou Coal
Assuming the 90 days trading horizon UET United Electronic is expected to generate 3.73 times more return on investment than Yanzhou Coal. However, UET United is 3.73 times more volatile than Yanzhou Coal Mining. It trades about 0.16 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about -0.22 per unit of risk. If you would invest 81.00 in UET United Electronic on September 5, 2024 and sell it today you would earn a total of 17.00 from holding UET United Electronic or generate 20.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UET United Electronic vs. Yanzhou Coal Mining
Performance |
| Timeline |
| UET United Electronic |
| Yanzhou Coal Mining |
UET United and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and Yanzhou Coal
The main advantage of trading using opposite UET United and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United 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.| UET United vs. HANOVER INSURANCE | UET United vs. The Hanover Insurance | UET United vs. ZURICH INSURANCE GROUP | UET United vs. CENTURIA OFFICE REIT |
| Yanzhou Coal vs. PT Bayan Resources | Yanzhou Coal vs. Yanzhou Coal Mining | Yanzhou Coal vs. PT Adaro Energy | Yanzhou Coal vs. Whitehaven Coal Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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