Correlation Between Yanzhou Coal and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on Yanzhou Coal and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Mitsubishi Gas.
Diversification Opportunities for Yanzhou Coal and Mitsubishi Gas
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yanzhou and Mitsubishi is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Mitsubishi Gas
Assuming the 90 days horizon Yanzhou Coal Mining is expected to under-perform the Mitsubishi Gas. In addition to that, Yanzhou Coal is 1.48 times more volatile than Mitsubishi Gas Chemical. It trades about -0.33 of its total potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about -0.02 per unit of volatility. If you would invest 1,650 in Mitsubishi Gas Chemical on October 16, 2024 and sell it today you would lose (10.00) from holding Mitsubishi Gas Chemical or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. Mitsubishi Gas Chemical
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Mitsubishi Gas Chemical |
Yanzhou Coal and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Mitsubishi Gas
The main advantage of trading using opposite Yanzhou Coal and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' long position.| Yanzhou Coal vs. National Health Investors | Yanzhou Coal vs. alstria office REIT AG | Yanzhou Coal vs. OPKO HEALTH | Yanzhou Coal vs. FEMALE HEALTH |
| Mitsubishi Gas vs. Burlington Stores | Mitsubishi Gas vs. Pentair plc | Mitsubishi Gas vs. JIAHUA STORES | Mitsubishi Gas vs. ALTAIR RES INC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges |