Correlation Between Yanzhou Coal and Continental Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Yanzhou Coal and Continental Aktiengesellscha 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 Continental Aktiengesellscha 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 Continental Aktiengesellschaft, you can compare the effects of market volatilities on Yanzhou Coal and Continental Aktiengesellscha 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 Continental Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yanzhou Coal and Continental Aktiengesellscha.
Diversification Opportunities for Yanzhou Coal and Continental Aktiengesellscha
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yanzhou and Continental is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yanzhou Coal Mining and Continental Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Aktiengesellscha 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 Continental Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Aktiengesellscha has no effect on the direction of Yanzhou Coal i.e., Yanzhou Coal and Continental Aktiengesellscha go up and down completely randomly.
Pair Corralation between Yanzhou Coal and Continental Aktiengesellscha
Assuming the 90 days trading horizon Yanzhou Coal is expected to generate 1.1 times less return on investment than Continental Aktiengesellscha. In addition to that, Yanzhou Coal is 1.11 times more volatile than Continental Aktiengesellschaft. It trades about 0.1 of its total potential returns per unit of risk. Continental Aktiengesellschaft is currently generating about 0.12 per unit of volatility. If you would invest 5,636 in Continental Aktiengesellschaft on September 7, 2025 and sell it today you would earn a total of 854.00 from holding Continental Aktiengesellschaft or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yanzhou Coal Mining vs. Continental Aktiengesellschaft
Performance |
| Timeline |
| Yanzhou Coal Mining |
| Continental Aktiengesellscha |
Yanzhou Coal and Continental Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yanzhou Coal and Continental Aktiengesellscha
The main advantage of trading using opposite Yanzhou Coal and Continental Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yanzhou Coal position performs unexpectedly, Continental Aktiengesellscha 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 Continental Aktiengesellscha will offset losses from the drop in Continental Aktiengesellscha's long position.| Yanzhou Coal vs. China Shenhua Energy | Yanzhou Coal vs. PT Bayan Resources | Yanzhou Coal vs. Yanzhou Coal Mining | Yanzhou Coal vs. PT Adaro Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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