Correlation Between Zhongrun Resources and Guangdong Jingyi
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By analyzing existing cross correlation between Zhongrun Resources Investment and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Zhongrun Resources and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Guangdong Jingyi.
Diversification Opportunities for Zhongrun Resources and Guangdong Jingyi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongrun and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Guangdong Jingyi
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to under-perform the Guangdong Jingyi. In addition to that, Zhongrun Resources is 1.57 times more volatile than Guangdong Jingyi Metal. It trades about -0.03 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.03 per unit of volatility. If you would invest 699.00 in Guangdong Jingyi Metal on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Guangdong Jingyi Metal or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.38% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Zhongrun Resources |
| Guangdong Jingyi Metal |
Zhongrun Resources and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Guangdong Jingyi
The main advantage of trading using opposite Zhongrun Resources and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi'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 |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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