Correlation Between Zhongrun Resources and Sinomach Automobile
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By analyzing existing cross correlation between Zhongrun Resources Investment and Sinomach Automobile Co, you can compare the effects of market volatilities on Zhongrun Resources and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Sinomach Automobile.
Diversification Opportunities for Zhongrun Resources and Sinomach Automobile
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongrun and Sinomach is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Sinomach Automobile
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.7 times more return on investment than Sinomach Automobile. However, Zhongrun Resources is 1.7 times more volatile than Sinomach Automobile Co. It trades about 0.38 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.05 per unit of risk. If you would invest 152.00 in Zhongrun Resources Investment on October 14, 2024 and sell it today you would earn a total of 237.00 from holding Zhongrun Resources Investment or generate 155.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Sinomach Automobile Co
Performance |
| Timeline |
| Zhongrun Resources |
| Sinomach Automobile |
Zhongrun Resources and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Sinomach Automobile
The main advantage of trading using opposite Zhongrun Resources and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Zhongrun Resources vs. Giantec Semiconductor Corp | Zhongrun Resources vs. Heilongjiang Publishing Media | Zhongrun Resources vs. China Publishing Media | Zhongrun Resources vs. GigaDevice SemiconductorBeiji |
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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