Correlation Between Kunwu Jiuding and Zhongrun Resources
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Zhongrun Resources Investment, you can compare the effects of market volatilities on Kunwu Jiuding 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 Kunwu Jiuding with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Zhongrun Resources.
Diversification Opportunities for Kunwu Jiuding and Zhongrun Resources
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kunwu and Zhongrun is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Kunwu Jiuding 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 Kunwu Jiuding Investment 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 Kunwu Jiuding i.e., Kunwu Jiuding and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Zhongrun Resources
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Zhongrun Resources. But the stock apears to be less risky and, when comparing its historical volatility, Kunwu Jiuding Investment is 1.1 times less risky than Zhongrun Resources. The stock trades about -0.04 of its potential returns per unit of risk. The Zhongrun Resources Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 383.00 in Zhongrun Resources Investment on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Zhongrun Resources Investment or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Zhongrun Resources |
Kunwu Jiuding and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Zhongrun Resources
The main advantage of trading using opposite Kunwu Jiuding and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding 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.| Kunwu Jiuding vs. Gansu Jiu Steel | Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. Aba Chemicals Corp | Kunwu Jiuding vs. Loctek Ergonomic Technology |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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