Correlation Between Yanzhou Coal and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Ultra Clean 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 Ultra Clean 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 Ultra Clean Holdings, you can compare the effects of market volatilities on Yanzhou Coal and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Ultra Clean.
Diversification Opportunities for Yanzhou Coal and Ultra Clean
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yanzhou and Ultra is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Ultra Clean go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Ultra Clean
Assuming the 90 days horizon Yanzhou Coal Mining is expected to generate 1.29 times more return on investment than Ultra Clean. However, Yanzhou Coal is 1.29 times more volatile than Ultra Clean Holdings. It trades about 0.0 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.07 per unit of risk. If you would invest 1,115 in Yanzhou Coal Mining on November 4, 2024 and sell it today you would lose (115.00) from holding Yanzhou Coal Mining or give up 10.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. Ultra Clean Holdings
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Ultra Clean Holdings |
Yanzhou Coal and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Ultra Clean
The main advantage of trading using opposite Yanzhou Coal and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| Yanzhou Coal vs. OPKO HEALTH | Yanzhou Coal vs. Commonwealth Bank of | Yanzhou Coal vs. Sims Metal Management | Yanzhou Coal vs. CeoTronics AG |
| Ultra Clean vs. ASML HOLDING NY | Ultra Clean vs. ASML Holding NV | Ultra Clean vs. ASML Holding NV | Ultra Clean vs. Applied Materials |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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