Correlation Between Zhongrun Resources and FSPG Hi-Tech
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By analyzing existing cross correlation between Zhongrun Resources Investment and FSPG Hi Tech Co, you can compare the effects of market volatilities on Zhongrun Resources and FSPG Hi-Tech 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 FSPG Hi-Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and FSPG Hi-Tech.
Diversification Opportunities for Zhongrun Resources and FSPG Hi-Tech
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongrun and FSPG is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi-Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and FSPG Hi-Tech go up and down completely randomly.
Pair Corralation between Zhongrun Resources and FSPG Hi-Tech
Assuming the 90 days trading horizon Zhongrun Resources is expected to generate 1.42 times less return on investment than FSPG Hi-Tech. In addition to that, Zhongrun Resources is 1.42 times more volatile than FSPG Hi Tech Co. It trades about 0.02 of its total potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.04 per unit of volatility. If you would invest 471.00 in FSPG Hi Tech Co on November 5, 2024 and sell it today you would earn a total of 87.00 from holding FSPG Hi Tech Co or generate 18.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Zhongrun Resources |
| FSPG Hi Tech |
Zhongrun Resources and FSPG Hi-Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and FSPG Hi-Tech
The main advantage of trading using opposite Zhongrun Resources and FSPG Hi-Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, FSPG Hi-Tech 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 FSPG Hi-Tech will offset losses from the drop in FSPG Hi-Tech's long position.| Zhongrun Resources vs. Cultural Investment Holdings | Zhongrun Resources vs. Dr Peng Telecom | Zhongrun Resources vs. Nuode Investment Co | Zhongrun Resources vs. Chengdu Xingrong Investment |
| FSPG Hi-Tech vs. HanS Laser Tech | FSPG Hi-Tech vs. Holitech Technology Co | FSPG Hi-Tech vs. Yindu Kitchen Equipment | FSPG Hi-Tech vs. Shandong Polymer Biochemicals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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