Correlation Between Zhongrun Resources and Jinhe Biotechnology
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By analyzing existing cross correlation between Zhongrun Resources Investment and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Zhongrun Resources and Jinhe Biotechnology 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 Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Jinhe Biotechnology.
Diversification Opportunities for Zhongrun Resources and Jinhe Biotechnology
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongrun and Jinhe is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology 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 Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Jinhe Biotechnology
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.22 times more return on investment than Jinhe Biotechnology. However, Zhongrun Resources is 1.22 times more volatile than Jinhe Biotechnology Co. It trades about 0.11 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about -0.04 per unit of risk. If you would invest 383.00 in Zhongrun Resources Investment on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Zhongrun Resources Investment or generate 7.83% 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. Jinhe Biotechnology Co
Performance |
| Timeline |
| Zhongrun Resources |
| Jinhe Biotechnology |
Zhongrun Resources and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Jinhe Biotechnology
The main advantage of trading using opposite Zhongrun Resources and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Zhongrun Resources vs. Fujian Anjoy Foods | Zhongrun Resources vs. Eastroc Beverage Group | Zhongrun Resources vs. Xiwang Foodstuffs Co | Zhongrun Resources vs. Malion New Materials |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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