Correlation Between Zhongrun Resources and Bohai Leasing
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By analyzing existing cross correlation between Zhongrun Resources Investment and Bohai Leasing Co, you can compare the effects of market volatilities on Zhongrun Resources and Bohai Leasing 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 Zhongrun Resources with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Bohai Leasing.
Diversification Opportunities for Zhongrun Resources and Bohai Leasing
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongrun and Bohai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Zhongrun Resources 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 Zhongrun Resources Investment are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Bohai Leasing go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Bohai Leasing
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.89 times more return on investment than Bohai Leasing. However, Zhongrun Resources is 1.89 times more volatile than Bohai Leasing Co. It trades about 0.12 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.21 per unit of risk. If you would invest 335.00 in Zhongrun Resources Investment on November 1, 2024 and sell it today you would earn a total of 56.00 from holding Zhongrun Resources Investment or generate 16.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Bohai Leasing Co
Performance |
| Timeline |
| Zhongrun Resources |
| Bohai Leasing |
Zhongrun Resources and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Bohai Leasing
The main advantage of trading using opposite Zhongrun Resources and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| Zhongrun Resources vs. Luyin Investment Group | Zhongrun Resources vs. Jiangsu Phoenix Publishing | Zhongrun Resources vs. Tangel Publishing | Zhongrun Resources vs. Changjiang Publishing Media |
| Bohai Leasing vs. Shaanxi Energy Investment | Bohai Leasing vs. Cultural Investment Holdings | Bohai Leasing vs. Hunan Investment Group | Bohai Leasing vs. Zhongrun Resources 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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