Correlation Between Zhongrun Resources and Changchun High
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By analyzing existing cross correlation between Zhongrun Resources Investment and Changchun High New, you can compare the effects of market volatilities on Zhongrun Resources and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Changchun High.
Diversification Opportunities for Zhongrun Resources and Changchun High
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhongrun and Changchun is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Changchun High go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Changchun High
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 3.7 times more return on investment than Changchun High. However, Zhongrun Resources is 3.7 times more volatile than Changchun High New. It trades about 0.3 of its potential returns per unit of risk. Changchun High New is currently generating about -0.59 per unit of risk. If you would invest 311.00 in Zhongrun Resources Investment on October 14, 2024 and sell it today you would earn a total of 78.00 from holding Zhongrun Resources Investment or generate 25.08% 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. Changchun High New
Performance |
| Timeline |
| Zhongrun Resources |
| Changchun High New |
Zhongrun Resources and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Changchun High
The main advantage of trading using opposite Zhongrun Resources and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Zhongrun Resources vs. Chengdu Xinzhu RoadBridge | Zhongrun Resources vs. Guangxi Wuzhou Communications | Zhongrun Resources vs. Songz Automobile Air | Zhongrun Resources vs. Fujian Longzhou Transportation |
| Changchun High vs. Tieling Newcity Investment | Changchun High vs. Zhongrun Resources Investment | Changchun High vs. Do Fluoride Chemicals Co | Changchun High vs. Weichai Heavy Machinery |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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