Correlation Between MAGNUM MINING and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING 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 MAGNUM MINING and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGNUM MINING EXP and Yanzhou Coal Mining, you can compare the effects of market volatilities on MAGNUM MINING 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 MAGNUM MINING with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and Yanzhou Coal.
Diversification Opportunities for MAGNUM MINING and Yanzhou Coal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and Yanzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP 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 MAGNUM MINING 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 MAGNUM MINING EXP 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 MAGNUM MINING i.e., MAGNUM MINING and Yanzhou Coal go up and down completely randomly.
Pair Corralation between MAGNUM MINING and Yanzhou Coal
If you would invest 6.08 in MAGNUM MINING EXP on October 26, 2024 and sell it today you would earn a total of 0.00 from holding MAGNUM MINING EXP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. Yanzhou Coal Mining
Performance |
| Timeline |
| MAGNUM MINING EXP |
| Yanzhou Coal Mining |
MAGNUM MINING and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and Yanzhou Coal
The main advantage of trading using opposite MAGNUM MINING and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING 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.| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc |
| Yanzhou Coal vs. China Shenhua Energy | Yanzhou Coal vs. PT Bayan Resources | Yanzhou Coal vs. Yancoal Australia | 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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