Correlation Between Zoje Resources and Inner Mongolia
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By analyzing existing cross correlation between Zoje Resources Investment and Inner Mongolia Yuan, you can compare the effects of market volatilities on Zoje Resources and Inner Mongolia 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 Zoje Resources with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Inner Mongolia.
Diversification Opportunities for Zoje Resources and Inner Mongolia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoje and Inner is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Inner Mongolia Yuan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yuan and Zoje 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 Zoje Resources Investment are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yuan has no effect on the direction of Zoje Resources i.e., Zoje Resources and Inner Mongolia go up and down completely randomly.
Pair Corralation between Zoje Resources and Inner Mongolia
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.62 times more return on investment than Inner Mongolia. However, Zoje Resources is 1.62 times more volatile than Inner Mongolia Yuan. It trades about 0.09 of its potential returns per unit of risk. Inner Mongolia Yuan is currently generating about -0.01 per unit of risk. If you would invest 124.00 in Zoje Resources Investment on September 12, 2024 and sell it today you would earn a total of 201.00 from holding Zoje Resources Investment or generate 162.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Inner Mongolia Yuan
Performance |
| Timeline |
| Zoje Resources Investment |
| Inner Mongolia Yuan |
Zoje Resources and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Inner Mongolia
The main advantage of trading using opposite Zoje Resources and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Bank of China | Zoje Resources vs. PetroChina Co Ltd |
| Inner Mongolia vs. HUAQIN TECHNOLOGY LTD | Inner Mongolia vs. CSSC Offshore Marine | Inner Mongolia vs. Kuangda Technology Group | Inner Mongolia vs. North Huajin Chemical |
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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