Correlation Between Zhongrun Resources and Henan Shuanghui
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By analyzing existing cross correlation between Zhongrun Resources Investment and Henan Shuanghui Investment, you can compare the effects of market volatilities on Zhongrun Resources and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Henan Shuanghui.
Diversification Opportunities for Zhongrun Resources and Henan Shuanghui
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongrun and Henan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Henan Shuanghui
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 2.13 times more return on investment than Henan Shuanghui. However, Zhongrun Resources is 2.13 times more volatile than Henan Shuanghui Investment. It trades about 0.42 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.08 per unit of risk. If you would invest 123.00 in Zhongrun Resources Investment on August 28, 2024 and sell it today you would earn a total of 186.00 from holding Zhongrun Resources Investment or generate 151.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.25% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Zhongrun Resources |
| Henan Shuanghui Inve |
Zhongrun Resources and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Henan Shuanghui
The main advantage of trading using opposite Zhongrun Resources and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources vs. Bank of China | Zhongrun Resources vs. Agricultural Bank of |
| Henan Shuanghui vs. China Petroleum Chemical | Henan Shuanghui vs. PetroChina Co Ltd | Henan Shuanghui vs. China State Construction | Henan Shuanghui vs. China Railway Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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