Correlation Between Zhongrun Resources and Xiangyang Automobile
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By analyzing existing cross correlation between Zhongrun Resources Investment and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Zhongrun Resources and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Xiangyang Automobile.
Diversification Opportunities for Zhongrun Resources and Xiangyang Automobile
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhongrun and Xiangyang is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Xiangyang Automobile
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.21 times more return on investment than Xiangyang Automobile. However, Zhongrun Resources is 1.21 times more volatile than Xiangyang Automobile Bearing. It trades about 0.05 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.04 per unit of risk. If you would invest 277.00 in Zhongrun Resources Investment on November 1, 2024 and sell it today you would earn a total of 114.00 from holding Zhongrun Resources Investment or generate 41.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Zhongrun Resources |
| Xiangyang Automobile |
Zhongrun Resources and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Xiangyang Automobile
The main advantage of trading using opposite Zhongrun Resources and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile'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 |
| Xiangyang Automobile vs. Kweichow Moutai Co | Xiangyang Automobile vs. Jiangsu Pacific Quartz | Xiangyang Automobile vs. Shenzhen Transsion Holdings | Xiangyang Automobile vs. Beijing Roborock Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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