Correlation Between Zhongrun Resources and Hainan Haiqi
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By analyzing existing cross correlation between Zhongrun Resources Investment and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Zhongrun Resources and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Hainan Haiqi.
Diversification Opportunities for Zhongrun Resources and Hainan Haiqi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongrun and Hainan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Hainan Haiqi
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.39 times more return on investment than Hainan Haiqi. However, Zhongrun Resources is 1.39 times more volatile than Hainan Haiqi Transportation. It trades about 0.03 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.01 per unit of risk. If you would invest 338.00 in Zhongrun Resources Investment on September 26, 2024 and sell it today you would earn a total of 45.00 from holding Zhongrun Resources Investment or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Zhongrun Resources |
| Hainan Haiqi Transpo |
Zhongrun Resources and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Hainan Haiqi
The main advantage of trading using opposite Zhongrun Resources and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Zhongrun Resources vs. PetroChina Co Ltd | Zhongrun Resources vs. China Mobile Limited | Zhongrun Resources vs. CNOOC Limited | Zhongrun Resources vs. Ping An Insurance |
| Hainan Haiqi vs. Fiberhome Telecommunication Technologies | Hainan Haiqi vs. Jinhui Liquor Co | Hainan Haiqi vs. Zhongrun Resources Investment | Hainan Haiqi vs. Qumei Furniture Group |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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