Correlation Between Zhongrun Resources and China Asset
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By analyzing existing cross correlation between Zhongrun Resources Investment and China Asset Management, you can compare the effects of market volatilities on Zhongrun Resources and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and China Asset.
Diversification Opportunities for Zhongrun Resources and China Asset
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and China is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and China Asset go up and down completely randomly.
Pair Corralation between Zhongrun Resources and China Asset
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 2.85 times more return on investment than China Asset. However, Zhongrun Resources is 2.85 times more volatile than China Asset Management. It trades about 0.17 of its potential returns per unit of risk. China Asset Management is currently generating about 0.34 per unit of risk. If you would invest 359.00 in Zhongrun Resources Investment on November 4, 2024 and sell it today you would earn a total of 32.00 from holding Zhongrun Resources Investment or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. China Asset Management
Performance |
| Timeline |
| Zhongrun Resources |
| China Asset Management |
Zhongrun Resources and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and China Asset
The main advantage of trading using opposite Zhongrun Resources and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Zhongrun Resources vs. Cultural Investment Holdings | Zhongrun Resources vs. Dr Peng Telecom | Zhongrun Resources vs. Nuode Investment Co | Zhongrun Resources vs. Chengdu Xingrong Investment |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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