Correlation Between Zhongrun Resources and A Zenith
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By analyzing existing cross correlation between Zhongrun Resources Investment and A Zenith Home Furnishings, you can compare the effects of market volatilities on Zhongrun Resources and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and A Zenith.
Diversification Opportunities for Zhongrun Resources and A Zenith
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongrun and 603389 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and A Zenith go up and down completely randomly.
Pair Corralation between Zhongrun Resources and A Zenith
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 0.64 times more return on investment than A Zenith. However, Zhongrun Resources Investment is 1.56 times less risky than A Zenith. It trades about 0.24 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about -0.11 per unit of risk. If you would invest 303.00 in Zhongrun Resources Investment on October 11, 2024 and sell it today you would earn a total of 59.00 from holding Zhongrun Resources Investment or generate 19.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. A Zenith Home Furnishings
Performance |
| Timeline |
| Zhongrun Resources |
| A Zenith Home |
Zhongrun Resources and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and A Zenith
The main advantage of trading using opposite Zhongrun Resources and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith's long position.| Zhongrun Resources vs. Tieling Newcity Investment | Zhongrun Resources vs. Chengdu Xingrong Investment | Zhongrun Resources vs. Wuxi Chemical Equipment | Zhongrun Resources vs. Luyin Investment Group |
| A Zenith vs. China Minmetals Rare | A Zenith vs. Shenyang Huitian Thermal | A Zenith vs. Zhongrun Resources Investment | A Zenith vs. Chengtun Mining 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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