Correlation Between Zoje Resources and Guangdong Jingyi
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By analyzing existing cross correlation between Zoje Resources Investment and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Zoje Resources and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Guangdong Jingyi.
Diversification Opportunities for Zoje Resources and Guangdong Jingyi
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoje and Guangdong is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Zoje Resources i.e., Zoje Resources and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Zoje Resources and Guangdong Jingyi
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.19 times more return on investment than Guangdong Jingyi. However, Zoje Resources is 1.19 times more volatile than Guangdong Jingyi Metal. It trades about 0.07 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.03 per unit of risk. If you would invest 202.00 in Zoje Resources Investment on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Zoje Resources Investment or generate 34.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Zoje Resources Investment |
| Guangdong Jingyi Metal |
Zoje Resources and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Guangdong Jingyi
The main advantage of trading using opposite Zoje Resources and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Zoje Resources vs. Cultural Investment Holdings | Zoje Resources vs. Gome Telecom Equipment | Zoje Resources vs. Bus Online Co | Zoje Resources vs. Holitech Technology Co |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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