Correlation Between Guangzhou Jointas and Zhongrun Resources
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Zhongrun Resources Investment, you can compare the effects of market volatilities on Guangzhou Jointas 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 Guangzhou Jointas with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Zhongrun Resources.
Diversification Opportunities for Guangzhou Jointas and Zhongrun Resources
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Zhongrun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Guangzhou Jointas 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 Guangzhou Jointas Chemical 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 Guangzhou Jointas i.e., Guangzhou Jointas and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Zhongrun Resources
Assuming the 90 days trading horizon Guangzhou Jointas is expected to generate 2.95 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, Guangzhou Jointas Chemical is 1.5 times less risky than Zhongrun Resources. It trades about 0.14 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 273.00 in Zhongrun Resources Investment on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Zhongrun Resources Investment or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Guangzhou Jointas |
| Zhongrun Resources |
Guangzhou Jointas and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Zhongrun Resources
The main advantage of trading using opposite Guangzhou Jointas and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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.| Guangzhou Jointas vs. Zhongrun Resources Investment | Guangzhou Jointas vs. Hunan Investment Group | Guangzhou Jointas vs. Maoming Petro Chemical Shihua | Guangzhou Jointas vs. Metro Investment Development |
| Zhongrun Resources vs. BeiGene | Zhongrun Resources vs. Kweichow Moutai Co | Zhongrun Resources vs. Beijing Roborock Technology | Zhongrun Resources vs. G bits Network Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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