Correlation Between Zhongrun Resources and Hubei Geoway
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By analyzing existing cross correlation between Zhongrun Resources Investment and Hubei Geoway Investment, you can compare the effects of market volatilities on Zhongrun Resources and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Hubei Geoway.
Diversification Opportunities for Zhongrun Resources and Hubei Geoway
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongrun and Hubei is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Hubei Geoway go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Hubei Geoway
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.5 times more return on investment than Hubei Geoway. However, Zhongrun Resources is 1.5 times more volatile than Hubei Geoway Investment. It trades about 0.19 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.14 per unit of risk. If you would invest 301.00 in Zhongrun Resources Investment on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Zhongrun Resources Investment or generate 17.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Hubei Geoway Investment
Performance |
| Timeline |
| Zhongrun Resources |
| Hubei Geoway Investment |
Zhongrun Resources and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Hubei Geoway
The main advantage of trading using opposite Zhongrun Resources and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway'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 |
| Hubei Geoway vs. Zijin Mining Group | Hubei Geoway vs. Baoshan Iron Steel | Hubei Geoway vs. Hoshine Silicon Ind |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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