Correlation Between Yanzhou Coal and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and ALBIS LEASING 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 Yanzhou Coal and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yanzhou Coal Mining and ALBIS LEASING AG, you can compare the effects of market volatilities on Yanzhou Coal and ALBIS LEASING 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 Yanzhou Coal with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and ALBIS LEASING.
Diversification Opportunities for Yanzhou Coal and ALBIS LEASING
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yanzhou and ALBIS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG and Yanzhou Coal 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 Yanzhou Coal Mining are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Yanzhou Coal and ALBIS LEASING
Assuming the 90 days horizon Yanzhou Coal is expected to generate 7.26 times less return on investment than ALBIS LEASING. In addition to that, Yanzhou Coal is 4.24 times more volatile than ALBIS LEASING AG. It trades about 0.0 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.14 per unit of volatility. If you would invest 199.00 in ALBIS LEASING AG on December 7, 2024 and sell it today you would earn a total of 79.00 from holding ALBIS LEASING AG or generate 39.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. ALBIS LEASING AG
Performance |
| Timeline |
| Yanzhou Coal Mining |
| ALBIS LEASING AG |
Yanzhou Coal and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and ALBIS LEASING
The main advantage of trading using opposite Yanzhou Coal and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Yanzhou Coal vs. BG Foods | ||
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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