Correlation Between Zhongrun Resources and China Minmetals
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By analyzing existing cross correlation between Zhongrun Resources Investment and China Minmetals Rare, you can compare the effects of market volatilities on Zhongrun Resources and China Minmetals 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 China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and China Minmetals.
Diversification Opportunities for Zhongrun Resources and China Minmetals
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongrun and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare 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 China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and China Minmetals go up and down completely randomly.
Pair Corralation between Zhongrun Resources and China Minmetals
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.22 times more return on investment than China Minmetals. However, Zhongrun Resources is 1.22 times more volatile than China Minmetals Rare. It trades about 0.28 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.04 per unit of risk. If you would invest 273.00 in Zhongrun Resources Investment on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Zhongrun Resources Investment or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. China Minmetals Rare
Performance |
| Timeline |
| Zhongrun Resources |
| China Minmetals Rare |
Zhongrun Resources and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and China Minmetals
The main advantage of trading using opposite Zhongrun Resources and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Zhongrun Resources vs. BeiGene | Zhongrun Resources vs. Kweichow Moutai Co | Zhongrun Resources vs. Beijing Roborock Technology | Zhongrun Resources vs. G bits Network Technology |
| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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