Correlation Between Zhengzhou Coal and Invengo Information

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Can any of the company-specific risk be diversified away by investing in both Zhengzhou Coal and Invengo Information 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 Zhengzhou Coal and Invengo Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhengzhou Coal Mining and Invengo Information Technology, you can compare the effects of market volatilities on Zhengzhou Coal and Invengo Information 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 Zhengzhou Coal with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Coal and Invengo Information.

Diversification Opportunities for Zhengzhou Coal and Invengo Information

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between Zhengzhou and Invengo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Coal Mining and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Zhengzhou 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 Zhengzhou Coal Mining are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Zhengzhou Coal i.e., Zhengzhou Coal and Invengo Information go up and down completely randomly.

Pair Corralation between Zhengzhou Coal and Invengo Information

Assuming the 90 days trading horizon Zhengzhou Coal Mining is expected to generate 0.95 times more return on investment than Invengo Information. However, Zhengzhou Coal Mining is 1.05 times less risky than Invengo Information. It trades about 0.08 of its potential returns per unit of risk. Invengo Information Technology is currently generating about -0.25 per unit of risk. If you would invest  2,389  in Zhengzhou Coal Mining on September 12, 2025 and sell it today you would earn a total of  66.00  from holding Zhengzhou Coal Mining or generate 2.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Zhengzhou Coal Mining  vs.  Invengo Information Technology

 Performance 
       Timeline  
Zhengzhou Coal Mining 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Zhengzhou Coal Mining are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zhengzhou Coal may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Invengo Information 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Invengo Information Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Zhengzhou Coal and Invengo Information Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Zhengzhou Coal and Invengo Information

The main advantage of trading using opposite Zhengzhou Coal and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Coal position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.
The idea behind Zhengzhou Coal Mining and Invengo Information Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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