Correlation Between Zhongrun Resources and Gansu Jiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongrun Resources Investment and Gansu Jiu Steel, you can compare the effects of market volatilities on Zhongrun Resources and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Gansu Jiu.
Diversification Opportunities for Zhongrun Resources and Gansu Jiu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongrun and Gansu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Gansu Jiu go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Gansu Jiu
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 0.96 times more return on investment than Gansu Jiu. However, Zhongrun Resources Investment is 1.04 times less risky than Gansu Jiu. It trades about 0.3 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.05 per unit of risk. If you would invest 236.00 in Zhongrun Resources Investment on August 27, 2024 and sell it today you would earn a total of 73.00 from holding Zhongrun Resources Investment or generate 30.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Gansu Jiu Steel
Performance |
| Timeline |
| Zhongrun Resources |
| Gansu Jiu Steel |
Zhongrun Resources and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Gansu Jiu
The main advantage of trading using opposite Zhongrun Resources and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's 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 |
| Gansu Jiu vs. Vanfund Urban Investment | Gansu Jiu vs. Shengda Mining Co | Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Beijing Mainstreets Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| CEOs Directory Screen CEOs from public companies around the world |