Correlation Between China Asset and Zhongrun Resources
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By analyzing existing cross correlation between China Asset Management and Zhongrun Resources Investment, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Zhongrun Resources.
Diversification Opportunities for China Asset and Zhongrun Resources
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhongrun is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Zhongrun Resources go up and down completely randomly.
Pair Corralation between China Asset and Zhongrun Resources
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.25 times more return on investment than Zhongrun Resources. However, China Asset Management is 3.98 times less risky than Zhongrun Resources. It trades about 0.57 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.11 per unit of risk. If you would invest 353.00 in China Asset Management on October 25, 2024 and sell it today you would earn a total of 44.00 from holding China Asset Management or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Zhongrun Resources Investment
Performance |
| Timeline |
| China Asset Management |
| Zhongrun Resources |
China Asset and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Zhongrun Resources
The main advantage of trading using opposite China Asset and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Zhongrun Resources vs. Fujian Anjoy Foods | Zhongrun Resources vs. Eastroc Beverage Group | Zhongrun Resources vs. Xiwang Foodstuffs Co | Zhongrun Resources vs. Malion New Materials |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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