Correlation Between Zhongrun Resources and Shandong Sanyuan
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By analyzing existing cross correlation between Zhongrun Resources Investment and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Zhongrun Resources and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Shandong Sanyuan.
Diversification Opportunities for Zhongrun Resources and Shandong Sanyuan
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongrun and Shandong is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Shandong Sanyuan
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 2.14 times more return on investment than Shandong Sanyuan. However, Zhongrun Resources is 2.14 times more volatile than Shandong Sanyuan Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.13 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Zhongrun Resources |
| Shandong Sanyuan Bio |
Zhongrun Resources and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Shandong Sanyuan
The main advantage of trading using opposite Zhongrun Resources and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan'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 |
| Shandong Sanyuan vs. Agricultural Bank of | Shandong Sanyuan vs. Postal Savings Bank | Shandong Sanyuan vs. Bank of Communications | Shandong Sanyuan vs. China Merchants Bank |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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