Correlation Between Shenyang Huitian and Zhongrun Resources
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Zhongrun Resources Investment, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Zhongrun Resources.
Diversification Opportunities for Shenyang Huitian and Zhongrun Resources
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Zhongrun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Zhongrun Resources
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.5 times more return on investment than Zhongrun Resources. However, Shenyang Huitian Thermal is 1.99 times less risky than Zhongrun Resources. It trades about -0.04 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.21 per unit of risk. If you would invest 393.00 in Shenyang Huitian Thermal on September 12, 2024 and sell it today you would lose (9.00) from holding Shenyang Huitian Thermal or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Zhongrun Resources |
Shenyang Huitian and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Zhongrun Resources
The main advantage of trading using opposite Shenyang Huitian and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Gansu Jiu Steel | Shenyang Huitian vs. Shandong Mining Machinery | Shenyang Huitian vs. Aba Chemicals Corp | Shenyang Huitian vs. BlueFocus Communication Group |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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