Correlation Between Yanzhou Coal and US Physical
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and US Physical 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 US Physical 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 US Physical Therapy, you can compare the effects of market volatilities on Yanzhou Coal and US Physical 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 US Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and US Physical.
Diversification Opportunities for Yanzhou Coal and US Physical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yanzhou and UPH is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and US Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physical Therapy 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 US Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physical Therapy has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and US Physical go up and down completely randomly.
Pair Corralation between Yanzhou Coal and US Physical
Assuming the 90 days horizon Yanzhou Coal Mining is expected to under-perform the US Physical. In addition to that, Yanzhou Coal is 1.42 times more volatile than US Physical Therapy. It trades about -0.1 of its total potential returns per unit of risk. US Physical Therapy is currently generating about -0.11 per unit of volatility. If you would invest 8,900 in US Physical Therapy on October 30, 2024 and sell it today you would lose (600.00) from holding US Physical Therapy or give up 6.74% 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. US Physical Therapy
Performance |
| Timeline |
| Yanzhou Coal Mining |
| US Physical Therapy |
Yanzhou Coal and US Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and US Physical
The main advantage of trading using opposite Yanzhou Coal and US Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, US Physical 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 US Physical will offset losses from the drop in US Physical's long position.| Yanzhou Coal vs. ONWARD MEDICAL BV | Yanzhou Coal vs. MICRONIC MYDATA | Yanzhou Coal vs. CVR Medical Corp | Yanzhou Coal vs. PULSION Medical Systems |
| US Physical vs. SBI Insurance Group | US Physical vs. SOCKET MOBILE NEW | US Physical vs. Singapore Reinsurance | US Physical vs. FIH MOBILE |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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