Correlation Between Zhongrun Resources and China Minsheng
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By analyzing existing cross correlation between Zhongrun Resources Investment and China Minsheng Banking, you can compare the effects of market volatilities on Zhongrun Resources and China Minsheng 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 Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and China Minsheng.
Diversification Opportunities for Zhongrun Resources and China Minsheng
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and China is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking 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 Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and China Minsheng go up and down completely randomly.
Pair Corralation between Zhongrun Resources and China Minsheng
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 2.16 times more return on investment than China Minsheng. However, Zhongrun Resources is 2.16 times more volatile than China Minsheng Banking. It trades about 0.13 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.1 per unit of risk. If you would invest 301.00 in Zhongrun Resources Investment on September 4, 2024 and sell it today you would earn a total of 34.00 from holding Zhongrun Resources Investment or generate 11.3% 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 Minsheng Banking
Performance |
| Timeline |
| Zhongrun Resources |
| China Minsheng Banking |
Zhongrun Resources and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and China Minsheng
The main advantage of trading using opposite Zhongrun Resources and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, China Minsheng 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 Minsheng will offset losses from the drop in China Minsheng's long position.| Zhongrun Resources vs. Nanjing Putian Telecommunications | Zhongrun Resources vs. Tianjin Realty Development | Zhongrun Resources vs. Shenyang Huitian Thermal | Zhongrun Resources vs. Shenzhen Changfang Light |
| China Minsheng vs. Zhongtong Guomai Communication | China Minsheng vs. Caihong Display Devices | China Minsheng vs. Everdisplay Optronics Shanghai | China Minsheng vs. Tianjin Hi Tech Development |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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