Correlation Between Zhongrun Resources and Oppein Home
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By analyzing existing cross correlation between Zhongrun Resources Investment and Oppein Home Group, you can compare the effects of market volatilities on Zhongrun Resources and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Oppein Home.
Diversification Opportunities for Zhongrun Resources and Oppein Home
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongrun and Oppein is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Oppein Home go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Oppein Home
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.48 times more return on investment than Oppein Home. However, Zhongrun Resources is 1.48 times more volatile than Oppein Home Group. It trades about 0.03 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.01 per unit of risk. If you would invest 326.00 in Zhongrun Resources Investment on August 23, 2024 and sell it today you would earn a total of 16.00 from holding Zhongrun Resources Investment or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
Zhongrun Resources Investment vs. Oppein Home Group
Performance |
| Timeline |
| Zhongrun Resources |
| Oppein Home Group |
Zhongrun Resources and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongrun Resources and Oppein Home
The main advantage of trading using opposite Zhongrun Resources and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Zhongrun Resources vs. Gansu Jiu Steel | Zhongrun Resources vs. Shandong Mining Machinery | Zhongrun Resources vs. Aba Chemicals Corp | Zhongrun Resources vs. BlueFocus Communication Group |
| Oppein Home vs. Zhejiang Construction Investment | Oppein Home vs. Zhongrun Resources Investment | Oppein Home vs. Zotye Automobile Co | Oppein Home vs. Wuhan Yangtze Communication |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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