Correlation Between Yanzhou Coal and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Nordic Semiconductor 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 Nordic Semiconductor 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 Nordic Semiconductor ASA, you can compare the effects of market volatilities on Yanzhou Coal and Nordic Semiconductor 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 Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Nordic Semiconductor.
Diversification Opportunities for Yanzhou Coal and Nordic Semiconductor
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yanzhou and Nordic is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA 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 Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Nordic Semiconductor
Assuming the 90 days horizon Yanzhou Coal Mining is expected to generate 0.99 times more return on investment than Nordic Semiconductor. However, Yanzhou Coal Mining is 1.01 times less risky than Nordic Semiconductor. It trades about 0.02 of its potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.01 per unit of risk. If you would invest 846.00 in Yanzhou Coal Mining on December 13, 2024 and sell it today you would earn a total of 89.00 from holding Yanzhou Coal Mining or generate 10.52% 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. Nordic Semiconductor ASA
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Nordic Semiconductor ASA |
Yanzhou Coal and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Nordic Semiconductor
The main advantage of trading using opposite Yanzhou Coal and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| Yanzhou Coal vs. CosmoSteel Holdings Limited | ||
| Yanzhou Coal vs. SPORT LISBOA E | ||
| Yanzhou Coal vs. Transport International Holdings | ||
| Yanzhou Coal vs. JAPAN TOBACCO UNSPADR12 |
| Nordic Semiconductor vs. Yanzhou Coal Mining | ||
| Nordic Semiconductor vs. Globex Mining Enterprises | ||
| Nordic Semiconductor vs. MAGNUM MINING EXP | ||
| Nordic Semiconductor vs. GALENA MINING LTD |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |