Correlation Between Hongrun Construction and Xian Sunresin
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By analyzing existing cross correlation between Hongrun Construction Group and Xian Sunresin New, you can compare the effects of market volatilities on Hongrun Construction and Xian Sunresin 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 Hongrun Construction with a short position of Xian Sunresin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Xian Sunresin.
Diversification Opportunities for Hongrun Construction and Xian Sunresin
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hongrun and Xian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Xian Sunresin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian Sunresin New and Hongrun Construction 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 Hongrun Construction Group are associated (or correlated) with Xian Sunresin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian Sunresin New has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and Xian Sunresin go up and down completely randomly.
Pair Corralation between Hongrun Construction and Xian Sunresin
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 0.76 times more return on investment than Xian Sunresin. However, Hongrun Construction Group is 1.32 times less risky than Xian Sunresin. It trades about 0.03 of its potential returns per unit of risk. Xian Sunresin New is currently generating about 0.02 per unit of risk. If you would invest 440.00 in Hongrun Construction Group on September 12, 2024 and sell it today you would earn a total of 49.00 from holding Hongrun Construction Group or generate 11.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Xian Sunresin New
Performance |
| Timeline |
| Hongrun Construction |
| Xian Sunresin New |
Hongrun Construction and Xian Sunresin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Xian Sunresin
The main advantage of trading using opposite Hongrun Construction and Xian Sunresin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, Xian Sunresin 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 Xian Sunresin will offset losses from the drop in Xian Sunresin's long position.| Hongrun Construction vs. Harvest Fund Management | Hongrun Construction vs. Hunan Mendale Hometextile | Hongrun Construction vs. Shanghai Shuixing Home | Hongrun Construction vs. Xiamen Goldenhome Co |
| Xian Sunresin vs. Nexchip Semiconductor Corp | Xian Sunresin vs. Hongrun Construction Group | Xian Sunresin vs. Gifore Agricultural Machinery | Xian Sunresin vs. Semiconductor Manufacturing Electronics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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