Correlation Between Yanzhou Coal and Easy Software
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Easy Software 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 Easy Software 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 Easy Software AG, you can compare the effects of market volatilities on Yanzhou Coal and Easy Software 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 Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Easy Software.
Diversification Opportunities for Yanzhou Coal and Easy Software
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yanzhou and Easy is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Easy Software go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Easy Software
Assuming the 90 days horizon Yanzhou Coal Mining is expected to under-perform the Easy Software. But the stock apears to be less risky and, when comparing its historical volatility, Yanzhou Coal Mining is 1.68 times less risky than Easy Software. The stock trades about -0.16 of its potential returns per unit of risk. The Easy Software AG is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,460 in Easy Software AG on October 26, 2024 and sell it today you would earn a total of 290.00 from holding Easy Software AG or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. Easy Software AG
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Easy Software AG |
Yanzhou Coal and Easy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Easy Software
The main advantage of trading using opposite Yanzhou Coal and Easy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Easy Software 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 Easy Software will offset losses from the drop in Easy Software's long position.| Yanzhou Coal vs. China Shenhua Energy | Yanzhou Coal vs. PT Bayan Resources | Yanzhou Coal vs. Yancoal Australia | Yanzhou Coal vs. Whitehaven Coal Limited |
| Easy Software vs. Salesforce | Easy Software vs. Uber Technologies | Easy Software vs. PagerDuty | Easy Software vs. Rocket Internet SE |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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