Correlation Between Chengdu Xingrong and Zhongrun Resources
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Zhongrun Resources Investment, you can compare the effects of market volatilities on Chengdu Xingrong and Zhongrun Resources 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 Chengdu Xingrong with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Zhongrun Resources.
Diversification Opportunities for Chengdu Xingrong and Zhongrun Resources
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Zhongrun is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Zhongrun Resources
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.34 times more return on investment than Zhongrun Resources. However, Chengdu Xingrong Investment is 2.93 times less risky than Zhongrun Resources. It trades about -0.23 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.23 per unit of risk. If you would invest 770.00 in Chengdu Xingrong Investment on September 12, 2024 and sell it today you would lose (57.00) from holding Chengdu Xingrong Investment or give up 7.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Zhongrun Resources |
Chengdu Xingrong and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Zhongrun Resources
The main advantage of trading using opposite Chengdu Xingrong and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Chengdu Xingrong vs. Sportsoul Co Ltd | Chengdu Xingrong vs. Guizhou BroadcastingTV Info | Chengdu Xingrong vs. Lander Sports Development | Chengdu Xingrong vs. Road Environment Technology |
| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources vs. Bank of China | Zhongrun Resources vs. Agricultural Bank of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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