Correlation Between Yanzhou Coal and Exxaro Resources
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Exxaro Resources 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 Exxaro Resources 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 Exxaro Resources Limited, you can compare the effects of market volatilities on Yanzhou Coal and Exxaro Resources 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 Exxaro Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Exxaro Resources.
Diversification Opportunities for Yanzhou Coal and Exxaro Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yanzhou and Exxaro is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Exxaro Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxaro Resources 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 Exxaro Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxaro Resources has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Exxaro Resources go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Exxaro Resources
If you would invest 1,050 in Exxaro Resources Limited on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Exxaro Resources Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. Exxaro Resources Limited
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Exxaro Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Yanzhou Coal and Exxaro Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Exxaro Resources
The main advantage of trading using opposite Yanzhou Coal and Exxaro Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Exxaro Resources 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 Exxaro Resources will offset losses from the drop in Exxaro Resources' long position.| Yanzhou Coal vs. Indo Tambangraya Megah | Yanzhou Coal vs. Bukit Asam Tbk | Yanzhou Coal vs. Geo Energy Resources | Yanzhou Coal vs. Yancoal Australia |
| Exxaro Resources vs. Yancoal Australia | Exxaro Resources vs. China Coal Energy | Exxaro Resources vs. Bukit Asam Tbk | Exxaro Resources vs. Indo Tambangraya Megah |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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