Correlation Between Zhongrun Resources and China Building
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By analyzing existing cross correlation between Zhongrun Resources Investment and China Building Material, you can compare the effects of market volatilities on Zhongrun Resources and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and China Building.
Diversification Opportunities for Zhongrun Resources and China Building
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and China Building go up and down completely randomly.
Pair Corralation between Zhongrun Resources and China Building
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to under-perform the China Building. In addition to that, Zhongrun Resources is 1.49 times more volatile than China Building Material. It trades about -0.23 of its total potential returns per unit of risk. China Building Material is currently generating about 0.11 per unit of volatility. If you would invest 736.00 in China Building Material on September 12, 2024 and sell it today you would earn a total of 44.00 from holding China Building Material or generate 5.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongrun Resources Investment vs. China Building Material
Performance |
Timeline |
Zhongrun Resources |
China Building Material |
Zhongrun Resources and China Building Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongrun Resources and China Building
The main advantage of trading using opposite Zhongrun Resources and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building'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 |
China Building vs. Qumei Furniture Group | China Building vs. AUPU Home Style | China Building vs. Easyhome New Retail | China Building vs. Markor International Home |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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