Correlation Between Shenzhen Changfang and Zhongrun Resources
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By analyzing existing cross correlation between Shenzhen Changfang Light and Zhongrun Resources Investment, you can compare the effects of market volatilities on Shenzhen Changfang 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 Shenzhen Changfang with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Changfang and Zhongrun Resources.
Diversification Opportunities for Shenzhen Changfang and Zhongrun Resources
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Zhongrun is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Changfang Light and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Shenzhen Changfang 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 Shenzhen Changfang Light 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 Shenzhen Changfang i.e., Shenzhen Changfang and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Shenzhen Changfang and Zhongrun Resources
Assuming the 90 days trading horizon Shenzhen Changfang Light is expected to generate 0.73 times more return on investment than Zhongrun Resources. However, Shenzhen Changfang Light is 1.37 times less risky than Zhongrun Resources. It trades about 0.03 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.21 per unit of risk. If you would invest 192.00 in Shenzhen Changfang Light on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Shenzhen Changfang Light or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Changfang Light vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Shenzhen Changfang Light |
| Zhongrun Resources |
Shenzhen Changfang and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Changfang and Zhongrun Resources
The main advantage of trading using opposite Shenzhen Changfang and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Changfang 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.| Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Bank of China | Shenzhen Changfang vs. PetroChina Co Ltd |
| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources vs. Bank of China | Zhongrun Resources vs. Agricultural Bank of |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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