Correlation Between Zhongrun Resources and Shanghai Material
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By analyzing existing cross correlation between Zhongrun Resources Investment and Shanghai Material Trading, you can compare the effects of market volatilities on Zhongrun Resources and Shanghai Material 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 Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Shanghai Material.
Diversification Opportunities for Zhongrun Resources and Shanghai Material
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhongrun and Shanghai is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Shanghai Material go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Shanghai Material
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.24 times more return on investment than Shanghai Material. However, Zhongrun Resources is 1.24 times more volatile than Shanghai Material Trading. It trades about 0.04 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about 0.02 per unit of risk. If you would invest 379.00 in Zhongrun Resources Investment on December 1, 2024 and sell it today you would earn a total of 184.00 from holding Zhongrun Resources Investment or generate 48.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Shanghai Material Trading
Performance |
| Timeline |
| Zhongrun Resources |
| Shanghai Material Trading |
Zhongrun Resources and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Shanghai Material
The main advantage of trading using opposite Zhongrun Resources and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Shanghai Material 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 Material will offset losses from the drop in Shanghai Material's long position.| Zhongrun Resources vs. Nancal Energy Saving Tech | Zhongrun Resources vs. Olympic Circuit Technology | Zhongrun Resources vs. GRG Banking Equipment | Zhongrun Resources vs. Industrial Bank Co |
| Shanghai Material vs. Guangxi Wuzhou Communications | Shanghai Material vs. Jilin OLED Material | Shanghai Material vs. Taiji Computer Corp | Shanghai Material vs. Fuda Alloy Materials |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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