Correlation Between Zhongrun Resources and Geron
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By analyzing existing cross correlation between Zhongrun Resources Investment and Geron Co, you can compare the effects of market volatilities on Zhongrun Resources and Geron 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 Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Geron.
Diversification Opportunities for Zhongrun Resources and Geron
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Geron is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Geron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron 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 Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Geron go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Geron
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to under-perform the Geron. In addition to that, Zhongrun Resources is 1.16 times more volatile than Geron Co. It trades about -0.21 of its total potential returns per unit of risk. Geron Co is currently generating about 0.16 per unit of volatility. If you would invest 1,499 in Geron Co on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Geron Co or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Geron Co
Performance |
| Timeline |
| Zhongrun Resources |
| Geron |
Zhongrun Resources and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Geron
The main advantage of trading using opposite Zhongrun Resources and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron'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 |
| Geron vs. LianChuang Electronic Technology | Geron vs. Semiconductor Manufacturing Electronics | Geron vs. Fujian Newland Computer | Geron vs. Integrated Electronic Systems |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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