Correlation Between Chongqing Road and Zhongrun Resources
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By analyzing existing cross correlation between Chongqing Road Bridge and Zhongrun Resources Investment, you can compare the effects of market volatilities on Chongqing Road 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 Chongqing Road with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Zhongrun Resources.
Diversification Opportunities for Chongqing Road and Zhongrun Resources
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chongqing and Zhongrun is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Chongqing Road 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 Chongqing Road Bridge 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 Chongqing Road i.e., Chongqing Road and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Chongqing Road and Zhongrun Resources
Assuming the 90 days trading horizon Chongqing Road is expected to generate 1.78 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, Chongqing Road Bridge is 1.36 times less risky than Zhongrun Resources. It trades about 0.02 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Zhongrun Resources Investment on October 9, 2024 and sell it today you would earn a total of 47.00 from holding Zhongrun Resources Investment or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Chongqing Road Bridge |
| Zhongrun Resources |
Chongqing Road and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Zhongrun Resources
The main advantage of trading using opposite Chongqing Road and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road 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.| Chongqing Road vs. Industrial and Commercial | Chongqing Road vs. Agricultural Bank of | Chongqing Road vs. China Construction Bank | Chongqing Road vs. Bank of China |
| Zhongrun Resources vs. Ming Yang Smart | Zhongrun Resources vs. 159681 | Zhongrun Resources vs. 159005 | Zhongrun Resources vs. Loctek Ergonomic 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 CEOs Directory module to screen CEOs from public companies around the world.
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