Correlation Between China Minsheng and Zhongrun Resources
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By analyzing existing cross correlation between China Minsheng Banking and Zhongrun Resources Investment, you can compare the effects of market volatilities on China Minsheng 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 Minsheng with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minsheng and Zhongrun Resources.
Diversification Opportunities for China Minsheng and Zhongrun Resources
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Zhongrun is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Minsheng Banking 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 Minsheng 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 Minsheng Banking 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 Minsheng i.e., China Minsheng and Zhongrun Resources go up and down completely randomly.
Pair Corralation between China Minsheng and Zhongrun Resources
Assuming the 90 days trading horizon China Minsheng is expected to generate 3.99 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, China Minsheng Banking is 1.92 times less risky than Zhongrun Resources. It trades about 0.18 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Zhongrun Resources Investment on September 12, 2024 and sell it today you would earn a total of 166.00 from holding Zhongrun Resources Investment or generate 121.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.25% |
| Values | Daily Returns |
China Minsheng Banking vs. Zhongrun Resources Investment
Performance |
| Timeline |
| China Minsheng Banking |
| Zhongrun Resources |
China Minsheng and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minsheng and Zhongrun Resources
The main advantage of trading using opposite China Minsheng and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minsheng 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 Minsheng vs. Sinofibers Technology Co | China Minsheng vs. Shandong Mining Machinery | China Minsheng vs. Fujian Oriental Silver | China Minsheng vs. Northking Information Technology |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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