Correlation Between Zhongrun Resources and Jiangxi Hengda
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By analyzing existing cross correlation between Zhongrun Resources Investment and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Zhongrun Resources and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Jiangxi Hengda.
Diversification Opportunities for Zhongrun Resources and Jiangxi Hengda
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongrun and Jiangxi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Jiangxi Hengda
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.48 times more return on investment than Jiangxi Hengda. However, Zhongrun Resources is 1.48 times more volatile than Jiangxi Hengda Hi Tech. It trades about 0.28 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about 0.12 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. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Zhongrun Resources |
| Jiangxi Hengda Hi |
Zhongrun Resources and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Jiangxi Hengda
The main advantage of trading using opposite Zhongrun Resources and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda'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 |
| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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