Correlation Between Zhonghong Pulin and Zoje Resources
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Zoje Resources Investment, you can compare the effects of market volatilities on Zhonghong Pulin and Zoje 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 Zhonghong Pulin with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Zoje Resources.
Diversification Opportunities for Zhonghong Pulin and Zoje Resources
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhonghong and Zoje is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Zhonghong Pulin 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 Zhonghong Pulin Medical are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Zhonghong Pulin i.e., Zhonghong Pulin and Zoje Resources go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Zoje Resources
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Zhonghong Pulin Medical is 1.62 times less risky than Zoje Resources. The stock trades about -0.28 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 251.00 in Zoje Resources Investment on October 31, 2024 and sell it today you would lose (9.00) from holding Zoje Resources Investment or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Zoje Resources Investment
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Zoje Resources Investment |
Zhonghong Pulin and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Zoje Resources
The main advantage of trading using opposite Zhonghong Pulin and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin position performs unexpectedly, Zoje 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Zhonghong Pulin vs. Agricultural Bank of | Zhonghong Pulin vs. Industrial and Commercial | Zhonghong Pulin vs. Bank of China | Zhonghong Pulin vs. China Construction Bank |
| Zoje Resources vs. PetroChina Co Ltd | Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. China Petroleum Chemical | Zoje Resources vs. China Construction Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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