Correlation Between Zhongrun Resources and Shanghai Shibei
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By analyzing existing cross correlation between Zhongrun Resources Investment and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on Zhongrun Resources and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Shanghai Shibei.
Diversification Opportunities for Zhongrun Resources and Shanghai Shibei
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongrun and Shanghai is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Shanghai Shibei go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Shanghai Shibei
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 0.98 times more return on investment than Shanghai Shibei. However, Zhongrun Resources Investment is 1.02 times less risky than Shanghai Shibei. It trades about 0.09 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.04 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. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| Zhongrun Resources |
| Shanghai Shibei Hi |
Zhongrun Resources and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Shanghai Shibei
The main advantage of trading using opposite Zhongrun Resources and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei'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 |
| Shanghai Shibei vs. Agricultural Bank of | Shanghai Shibei vs. Industrial and Commercial | Shanghai Shibei vs. Bank of China | Shanghai Shibei vs. China Construction Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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