Correlation Between Zhongrun Resources and Cangzhou Mingzhu
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By analyzing existing cross correlation between Zhongrun Resources Investment and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Zhongrun Resources and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Cangzhou Mingzhu.
Diversification Opportunities for Zhongrun Resources and Cangzhou Mingzhu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongrun and Cangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Cangzhou Mingzhu
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.71 times more return on investment than Cangzhou Mingzhu. However, Zhongrun Resources is 1.71 times more volatile than Cangzhou Mingzhu Plastic. It trades about 0.28 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about 0.19 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Zhongrun Resources |
| Cangzhou Mingzhu Plastic |
Zhongrun Resources and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Cangzhou Mingzhu
The main advantage of trading using opposite Zhongrun Resources and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's 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 |
| Cangzhou Mingzhu vs. Jilin Jlu Communication | Cangzhou Mingzhu vs. Shenzhen Kexin Communication | Cangzhou Mingzhu vs. Zhongtong Guomai Communication | Cangzhou Mingzhu vs. Gome Telecom Equipment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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