Correlation Between Jiangsu Yike and Zhongrun Resources
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By analyzing existing cross correlation between Jiangsu Yike Food and Zhongrun Resources Investment, you can compare the effects of market volatilities on Jiangsu Yike 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 Jiangsu Yike with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yike and Zhongrun Resources.
Diversification Opportunities for Jiangsu Yike and Zhongrun Resources
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Zhongrun is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yike Food and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Jiangsu Yike 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 Jiangsu Yike Food 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 Jiangsu Yike i.e., Jiangsu Yike and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Jiangsu Yike and Zhongrun Resources
Assuming the 90 days trading horizon Jiangsu Yike Food is expected to under-perform the Zhongrun Resources. In addition to that, Jiangsu Yike is 1.46 times more volatile than Zhongrun Resources Investment. It trades about -0.13 of its total potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.15 per unit of volatility. If you would invest 322.00 in Zhongrun Resources Investment on October 7, 2024 and sell it today you would earn a total of 37.00 from holding Zhongrun Resources Investment or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yike Food vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Jiangsu Yike Food |
| Zhongrun Resources |
Jiangsu Yike and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yike and Zhongrun Resources
The main advantage of trading using opposite Jiangsu Yike and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yike 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.| Jiangsu Yike vs. Vats Liquor Chain | Jiangsu Yike vs. Heilongjiang Transport Development | Jiangsu Yike vs. Xiangyu Medical Co | Jiangsu Yike vs. China World Trade |
| Zhongrun Resources vs. Jiangsu Flowers King | Zhongrun Resources vs. Chongqing Road Bridge | Zhongrun Resources vs. Kuang Chi Technologies | Zhongrun Resources vs. Gansu Jiu Steel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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