Correlation Between Yanzhou Coal and STGEORGE MINING
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and STGEORGE MINING 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 STGEORGE MINING 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 STGEORGE MINING LTD, you can compare the effects of market volatilities on Yanzhou Coal and STGEORGE MINING 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 STGEORGE MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and STGEORGE MINING.
Diversification Opportunities for Yanzhou Coal and STGEORGE MINING
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yanzhou and STGEORGE is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and STGEORGE MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STGEORGE MINING LTD 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 STGEORGE MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STGEORGE MINING LTD has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and STGEORGE MINING go up and down completely randomly.
Pair Corralation between Yanzhou Coal and STGEORGE MINING
Assuming the 90 days horizon Yanzhou Coal Mining is expected to under-perform the STGEORGE MINING. But the stock apears to be less risky and, when comparing its historical volatility, Yanzhou Coal Mining is 2.08 times less risky than STGEORGE MINING. The stock trades about -0.18 of its potential returns per unit of risk. The STGEORGE MINING LTD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1.20 in STGEORGE MINING LTD on October 26, 2024 and sell it today you would lose (0.05) from holding STGEORGE MINING LTD or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. STGEORGE MINING LTD
Performance |
| Timeline |
| Yanzhou Coal Mining |
| STGEORGE MINING LTD |
Yanzhou Coal and STGEORGE MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and STGEORGE MINING
The main advantage of trading using opposite Yanzhou Coal and STGEORGE MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, STGEORGE MINING 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 STGEORGE MINING will offset losses from the drop in STGEORGE MINING's long position.| Yanzhou Coal vs. China Shenhua Energy | Yanzhou Coal vs. PT Bayan Resources | Yanzhou Coal vs. Yancoal Australia | Yanzhou Coal vs. PT Bumi Resources |
| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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