Correlation Between Zhongrun Resources and Sinomach General
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongrun Resources Investment and Sinomach General Machinery, you can compare the effects of market volatilities on Zhongrun Resources and Sinomach General 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 General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Sinomach General.
Diversification Opportunities for Zhongrun Resources and Sinomach General
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongrun and Sinomach is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Sinomach General go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Sinomach General
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.74 times more return on investment than Sinomach General. However, Zhongrun Resources is 1.74 times more volatile than Sinomach General Machinery. It trades about 0.09 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.1 per unit of risk. If you would invest 353.00 in Zhongrun Resources Investment on October 30, 2024 and sell it today you would earn a total of 38.00 from holding Zhongrun Resources Investment or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Sinomach General Machinery
Performance |
| Timeline |
| Zhongrun Resources |
| Sinomach General Mac |
Zhongrun Resources and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Sinomach General
The main advantage of trading using opposite Zhongrun Resources and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Sinomach General 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 General will offset losses from the drop in Sinomach General's long position.| Zhongrun Resources vs. Tibet Huayu Mining | Zhongrun Resources vs. New Hope Dairy | Zhongrun Resources vs. Jiajia Food Group | Zhongrun Resources vs. Guangdong Silvere Sci |
| Sinomach General vs. Fuzhou Rockchip Electronics | Sinomach General vs. Dongnan Electronics Co | Sinomach General vs. Montage Technology Co | Sinomach General vs. YiDong Electronics Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |