Correlation Between Zhongrun Resources and Autek China
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By analyzing existing cross correlation between Zhongrun Resources Investment and Autek China, you can compare the effects of market volatilities on Zhongrun Resources and Autek China 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 Autek China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Autek China.
Diversification Opportunities for Zhongrun Resources and Autek China
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Autek is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Autek China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autek China 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 Autek China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autek China has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Autek China go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Autek China
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.4 times more return on investment than Autek China. However, Zhongrun Resources is 1.4 times more volatile than Autek China. It trades about 0.0 of its potential returns per unit of risk. Autek China is currently generating about -0.01 per unit of risk. If you would invest 434.00 in Zhongrun Resources Investment on September 14, 2024 and sell it today you would lose (113.00) from holding Zhongrun Resources Investment or give up 26.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Autek China
Performance |
| Timeline |
| Zhongrun Resources |
| Autek China |
Zhongrun Resources and Autek China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Autek China
The main advantage of trading using opposite Zhongrun Resources and Autek China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Autek China 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 Autek China will offset losses from the drop in Autek China's long position.| Zhongrun Resources vs. Postal Savings Bank | Zhongrun Resources vs. Hunan Investment Group | Zhongrun Resources vs. Ningbo Ligong Online | Zhongrun Resources vs. Guangdong Silvere Sci |
| Autek China vs. Hunan Investment Group | Autek China vs. Nuode Investment Co | Autek China vs. Great Sun Foods Co | Autek China vs. New Hope Dairy |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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