Correlation Between Zhongrun Resources and Senci Electric
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By analyzing existing cross correlation between Zhongrun Resources Investment and Senci Electric Machinery, you can compare the effects of market volatilities on Zhongrun Resources and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Senci Electric.
Diversification Opportunities for Zhongrun Resources and Senci Electric
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongrun and Senci is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Senci Electric go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Senci Electric
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to under-perform the Senci Electric. In addition to that, Zhongrun Resources is 2.15 times more volatile than Senci Electric Machinery. It trades about -0.21 of its total potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.06 per unit of volatility. If you would invest 1,610 in Senci Electric Machinery on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Senci Electric Machinery or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Senci Electric Machinery
Performance |
| Timeline |
| Zhongrun Resources |
| Senci Electric Machinery |
Zhongrun Resources and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Senci Electric
The main advantage of trading using opposite Zhongrun Resources and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.| Zhongrun Resources vs. Postal Savings Bank | Zhongrun Resources vs. Hunan Investment Group | Zhongrun Resources vs. Ningbo Ligong Online | Zhongrun Resources vs. Guangdong Silvere Sci |
| Senci Electric vs. Industrial and Commercial | Senci Electric vs. China Construction Bank | Senci Electric vs. Agricultural Bank of | Senci Electric vs. Bank of China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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