Correlation Between Rex Energy and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both Rex Energy and Yanzhou Coal 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 Rex Energy and Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rex Energy and Yanzhou Coal Mining, you can compare the effects of market volatilities on Rex Energy and Yanzhou Coal 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 Rex Energy with a short position of Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rex Energy and Yanzhou Coal.
Diversification Opportunities for Rex Energy and Yanzhou Coal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rex and Yanzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rex Energy and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining and Rex Energy 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 Rex Energy are associated (or correlated) with Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of Rex Energy i.e., Rex Energy and Yanzhou Coal go up and down completely randomly.
Pair Corralation between Rex Energy and Yanzhou Coal
If you would invest (100.00) in Rex Energy on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Rex Energy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rex Energy vs. Yanzhou Coal Mining
Performance |
| Timeline |
| Rex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yanzhou Coal Mining |
Rex Energy and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rex Energy and Yanzhou Coal
The main advantage of trading using opposite Rex Energy and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rex Energy position performs unexpectedly, Yanzhou Coal 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.| Rex Energy vs. Diageo PLC ADR | Rex Energy vs. Marie Brizard Wine | Rex Energy vs. Comstock Holding Companies | Rex Energy vs. Western Asset Investment |
| Yanzhou Coal vs. Indo Tambangraya Megah | Yanzhou Coal vs. Bukit Asam Tbk | Yanzhou Coal vs. Geo Energy Resources | Yanzhou Coal vs. Yancoal Australia |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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