Correlation Between Yanzhou Coal and Apple
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Yanzhou Coal and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Apple.
Diversification Opportunities for Yanzhou Coal and Apple
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yanzhou and Apple is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Apple go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Apple
Assuming the 90 days horizon Yanzhou Coal Mining is expected to generate 1.21 times more return on investment than Apple. However, Yanzhou Coal is 1.21 times more volatile than Apple Inc. It trades about -0.25 of its potential returns per unit of risk. Apple Inc is currently generating about -0.51 per unit of risk. If you would invest 1,060 in Yanzhou Coal Mining on October 23, 2024 and sell it today you would lose (85.00) from holding Yanzhou Coal Mining or give up 8.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. Apple Inc
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Apple Inc |
Yanzhou Coal and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Apple
The main advantage of trading using opposite Yanzhou Coal and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Yanzhou Coal vs. ATRESMEDIA | Yanzhou Coal vs. CNVISION MEDIA | Yanzhou Coal vs. SK TELECOM TDADR | Yanzhou Coal vs. Citic Telecom International |
| Apple vs. Globex Mining Enterprises | Apple vs. Perseus Mining Limited | Apple vs. MAG SILVER | Apple vs. TRI CHEMICAL LABORATINC |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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