Correlation Between FEMALE HEALTH and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Yanzhou Coal Mining, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Yanzhou Coal.
Diversification Opportunities for FEMALE HEALTH and Yanzhou Coal
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEMALE and Yanzhou is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Yanzhou Coal go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Yanzhou Coal
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 3.23 times more return on investment than Yanzhou Coal. However, FEMALE HEALTH is 3.23 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 68.00 in FEMALE HEALTH on October 30, 2024 and sell it today you would earn a total of 45.00 from holding FEMALE HEALTH or generate 66.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Yanzhou Coal Mining
Performance |
| Timeline |
| FEMALE HEALTH |
| Yanzhou Coal Mining |
FEMALE HEALTH and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Yanzhou Coal
The main advantage of trading using opposite FEMALE HEALTH and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. MidCap Financial Investment | FEMALE HEALTH vs. Shin Etsu Chemical Co | FEMALE HEALTH vs. Soken Chemical Engineering | FEMALE HEALTH vs. SEKISUI CHEMICAL |
| Yanzhou Coal vs. ONWARD MEDICAL BV | Yanzhou Coal vs. MICRONIC MYDATA | Yanzhou Coal vs. CVR Medical Corp | Yanzhou Coal vs. PULSION Medical Systems |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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