Correlation Between Zhongrun Resources and Anhui Huaheng
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By analyzing existing cross correlation between Zhongrun Resources Investment and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Zhongrun Resources and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Anhui Huaheng.
Diversification Opportunities for Zhongrun Resources and Anhui Huaheng
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhongrun and Anhui is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Anhui Huaheng
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.98 times more return on investment than Anhui Huaheng. However, Zhongrun Resources is 1.98 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.4 per unit of risk. If you would invest 383.00 in Zhongrun Resources Investment on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Zhongrun Resources Investment or generate 7.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongrun Resources Investment vs. Anhui Huaheng Biotechnology
Performance |
Timeline |
Zhongrun Resources |
Anhui Huaheng Biotec |
Zhongrun Resources and Anhui Huaheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongrun Resources and Anhui Huaheng
The main advantage of trading using opposite Zhongrun Resources and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.Zhongrun Resources vs. Fujian Anjoy Foods | Zhongrun Resources vs. Eastroc Beverage Group | Zhongrun Resources vs. Xiwang Foodstuffs Co | Zhongrun Resources vs. Malion New Materials |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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