Correlation Between Suzhou Industrial and Zhongrun Resources
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By analyzing existing cross correlation between Suzhou Industrial Park and Zhongrun Resources Investment, you can compare the effects of market volatilities on Suzhou Industrial 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 Suzhou Industrial with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Zhongrun Resources.
Diversification Opportunities for Suzhou Industrial and Zhongrun Resources
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Suzhou and Zhongrun is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Suzhou Industrial 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 Suzhou Industrial Park 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 Suzhou Industrial i.e., Suzhou Industrial and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Zhongrun Resources
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to under-perform the Zhongrun Resources. In addition to that, Suzhou Industrial is 1.6 times more volatile than Zhongrun Resources Investment. It trades about -0.06 of its total potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.17 per unit of volatility. If you would invest 359.00 in Zhongrun Resources Investment on November 4, 2024 and sell it today you would earn a total of 32.00 from holding Zhongrun Resources Investment or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Suzhou Industrial Park |
| Zhongrun Resources |
Suzhou Industrial and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Zhongrun Resources
The main advantage of trading using opposite Suzhou Industrial and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial 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.| Suzhou Industrial vs. De Rucci Healthy | Suzhou Industrial vs. Hainan Mining Co | Suzhou Industrial vs. Youngy Health Co | Suzhou Industrial vs. Sanbo Hospital Management |
| Zhongrun Resources vs. Cultural Investment Holdings | Zhongrun Resources vs. Dr Peng Telecom | Zhongrun Resources vs. Nuode Investment Co | Zhongrun Resources vs. Chengdu Xingrong 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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