Correlation Between Shandong Sanyuan and Zhongrun Resources
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Zhongrun Resources Investment, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Zhongrun Resources.
Diversification Opportunities for Shandong Sanyuan and Zhongrun Resources
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Zhongrun is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Zhongrun Resources
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to under-perform the Zhongrun Resources. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Sanyuan Biotechnology is 1.6 times less risky than Zhongrun Resources. The stock trades about -0.23 of its potential returns per unit of risk. The Zhongrun Resources Investment is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 307.00 in Zhongrun Resources Investment on October 10, 2024 and sell it today you would earn a total of 50.00 from holding Zhongrun Resources Investment or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Zhongrun Resources |
Shandong Sanyuan and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Zhongrun Resources
The main advantage of trading using opposite Shandong Sanyuan and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Mengtian Home Group | Shandong Sanyuan vs. Hangzhou Gisway Information | Shandong Sanyuan vs. Oppein Home Group | Shandong Sanyuan vs. Digital China Information |
| Zhongrun Resources vs. Xinjiang Baodi Mining | Zhongrun Resources vs. Kingsignal Technology Co | Zhongrun Resources vs. Iat Automobile Technology | Zhongrun Resources vs. Tianshui Huatian 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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