Correlation Between Zhongrun Resources and Lecron Energy
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By analyzing existing cross correlation between Zhongrun Resources Investment and Lecron Energy Saving, you can compare the effects of market volatilities on Zhongrun Resources and Lecron Energy 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 Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Lecron Energy.
Diversification Opportunities for Zhongrun Resources and Lecron Energy
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongrun and Lecron is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving 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 Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Lecron Energy go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Lecron Energy
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.46 times more return on investment than Lecron Energy. However, Zhongrun Resources is 1.46 times more volatile than Lecron Energy Saving. It trades about 0.23 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.45 per unit of risk. If you would invest 303.00 in Zhongrun Resources Investment on October 11, 2024 and sell it today you would earn a total of 59.00 from holding Zhongrun Resources Investment or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Lecron Energy Saving
Performance |
| Timeline |
| Zhongrun Resources |
| Lecron Energy Saving |
Zhongrun Resources and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Lecron Energy
The main advantage of trading using opposite Zhongrun Resources and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Zhongrun Resources vs. Bosera CMSK Industrial | Zhongrun Resources vs. Road Environment Technology | Zhongrun Resources vs. Jiangsu Broadcasting Cable | Zhongrun Resources vs. Hunan TV Broadcast |
| Lecron Energy vs. Hunan Investment Group | Lecron Energy vs. Zhongrun Resources Investment | Lecron Energy vs. Beijing Mainstreets Investment | Lecron Energy vs. Allwin Telecommunication 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 CEOs Directory module to screen CEOs from public companies around the world.
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