Correlation Between China Marine and Puda Coal
Can any of the company-specific risk be diversified away by investing in both China Marine and Puda 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 China Marine and Puda Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Marine Food and Puda Coal New, you can compare the effects of market volatilities on China Marine and Puda 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 China Marine with a short position of Puda Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Marine and Puda Coal.
Diversification Opportunities for China Marine and Puda Coal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Puda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Marine Food and Puda Coal New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puda Coal New and China Marine 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 China Marine Food are associated (or correlated) with Puda Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puda Coal New has no effect on the direction of China Marine i.e., China Marine and Puda Coal go up and down completely randomly.
Pair Corralation between China Marine and Puda Coal
If you would invest (100.00) in Puda Coal New on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Puda Coal New or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Marine Food vs. Puda Coal New
Performance |
| Timeline |
| China Marine Food |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Puda Coal New |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
China Marine and Puda Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Marine and Puda Coal
The main advantage of trading using opposite China Marine and Puda Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Marine position performs unexpectedly, Puda 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 Puda Coal will offset losses from the drop in Puda Coal's long position.| China Marine vs. General Mills | China Marine vs. Nestle SA | China Marine vs. Kellanova | China Marine vs. Campbell Soup |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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