Correlation Between Zoje Resources and China State
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By analyzing existing cross correlation between Zoje Resources Investment and China State Construction, you can compare the effects of market volatilities on Zoje Resources and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and China State.
Diversification Opportunities for Zoje Resources and China State
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zoje and China is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Zoje Resources i.e., Zoje Resources and China State go up and down completely randomly.
Pair Corralation between Zoje Resources and China State
Assuming the 90 days trading horizon Zoje Resources Investment is expected to under-perform the China State. In addition to that, Zoje Resources is 3.07 times more volatile than China State Construction. It trades about -0.37 of its total potential returns per unit of risk. China State Construction is currently generating about -0.42 per unit of volatility. If you would invest 614.00 in China State Construction on October 13, 2024 and sell it today you would lose (64.00) from holding China State Construction or give up 10.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zoje Resources Investment vs. China State Construction
Performance |
| Timeline |
| Zoje Resources Investment |
| China State Construction |
Zoje Resources and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and China State
The main advantage of trading using opposite Zoje Resources and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Zoje Resources vs. Ningbo Tip Rubber | Zoje Resources vs. HeBei Jinniu Chemical | Zoje Resources vs. Citic Guoan Wine | Zoje Resources vs. Shenyang Chemical Industry |
| China State vs. Western Metal Materials | China State vs. Harbin Hatou Investment | China State vs. Chengtun Mining Group | China State vs. Beijing Mainstreets Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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