Correlation Between Zhongrun Resources and Zhejiang Construction
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By analyzing existing cross correlation between Zhongrun Resources Investment and Zhejiang Construction Investment, you can compare the effects of market volatilities on Zhongrun Resources and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Zhejiang Construction.
Diversification Opportunities for Zhongrun Resources and Zhejiang Construction
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Zhejiang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Zhejiang Construction
Assuming the 90 days trading horizon Zhongrun Resources is expected to generate 1.05 times less return on investment than Zhejiang Construction. In addition to that, Zhongrun Resources is 1.11 times more volatile than Zhejiang Construction Investment. It trades about 0.3 of its total potential returns per unit of risk. Zhejiang Construction Investment is currently generating about 0.35 per unit of volatility. If you would invest 905.00 in Zhejiang Construction Investment on August 28, 2024 and sell it today you would earn a total of 286.00 from holding Zhejiang Construction Investment or generate 31.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Zhongrun Resources |
| Zhejiang Construction |
Zhongrun Resources and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Zhejiang Construction
The main advantage of trading using opposite Zhongrun Resources and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction'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 |
| Zhejiang Construction vs. China Life Insurance | Zhejiang Construction vs. Piotech Inc A | Zhejiang Construction vs. Dongxing Sec Co | Zhejiang Construction vs. Shanghai OPM Biosciences |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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