Correlation Between Zhongrun Resources and Shenzhen Longsys
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By analyzing existing cross correlation between Zhongrun Resources Investment and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Zhongrun Resources and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Shenzhen Longsys.
Diversification Opportunities for Zhongrun Resources and Shenzhen Longsys
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Shenzhen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Shenzhen Longsys
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to under-perform the Shenzhen Longsys. In addition to that, Zhongrun Resources is 1.69 times more volatile than Shenzhen Longsys Electronics. It trades about -0.21 of its total potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about -0.13 per unit of volatility. If you would invest 9,668 in Shenzhen Longsys Electronics on September 12, 2024 and sell it today you would lose (769.00) from holding Shenzhen Longsys Electronics or give up 7.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Zhongrun Resources |
| Shenzhen Longsys Ele |
Zhongrun Resources and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Shenzhen Longsys
The main advantage of trading using opposite Zhongrun Resources and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' 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 |
| Shenzhen Longsys vs. Gansu Jiu Steel | Shenzhen Longsys vs. Shandong Mining Machinery | Shenzhen Longsys vs. Aba Chemicals Corp | Shenzhen Longsys vs. BlueFocus Communication Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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