Correlation Between China Mobile and Zhongrun Resources
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By analyzing existing cross correlation between China Mobile Limited and Zhongrun Resources Investment, you can compare the effects of market volatilities on China Mobile 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 Mobile with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Mobile and Zhongrun Resources.
Diversification Opportunities for China Mobile and Zhongrun Resources
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Zhongrun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding China Mobile Limited 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 Mobile 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 Mobile Limited 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 Mobile i.e., China Mobile and Zhongrun Resources go up and down completely randomly.
Pair Corralation between China Mobile and Zhongrun Resources
Assuming the 90 days trading horizon China Mobile is expected to generate 33.27 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, China Mobile Limited is 2.4 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 0.3 of returns per unit of risk over similar time horizon. If you would invest 311.00 in Zhongrun Resources Investment on October 14, 2024 and sell it today you would earn a total of 78.00 from holding Zhongrun Resources Investment or generate 25.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Mobile Limited vs. Zhongrun Resources Investment
Performance |
| Timeline |
| China Mobile Limited |
| Zhongrun Resources |
China Mobile and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Mobile and Zhongrun Resources
The main advantage of trading using opposite China Mobile and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Mobile 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 Mobile vs. Jinsanjiang Silicon Material | China Mobile vs. Penyao Environmental Protection | China Mobile vs. Xilong Chemical Co | China Mobile vs. Miracll Chemicals Co |
| Zhongrun Resources vs. Giantec Semiconductor Corp | Zhongrun Resources vs. Heilongjiang Publishing Media | Zhongrun Resources vs. China Publishing Media | Zhongrun Resources vs. GigaDevice SemiconductorBeiji |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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