Correlation Between Jiangsu Broadcasting and Zhongrun Resources
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Zhongrun Resources Investment, you can compare the effects of market volatilities on Jiangsu Broadcasting 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 Jiangsu Broadcasting with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Zhongrun Resources.
Diversification Opportunities for Jiangsu Broadcasting and Zhongrun Resources
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Zhongrun is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Zhongrun Resources
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to under-perform the Zhongrun Resources. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Broadcasting Cable is 2.61 times less risky than Zhongrun Resources. The stock trades about -0.76 of its potential returns per unit of risk. The Zhongrun Resources Investment is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 306.00 in Zhongrun Resources Investment on October 12, 2024 and sell it today you would earn a total of 64.00 from holding Zhongrun Resources Investment or generate 20.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Zhongrun Resources |
Jiangsu Broadcasting and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Zhongrun Resources
The main advantage of trading using opposite Jiangsu Broadcasting and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting 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.| Jiangsu Broadcasting vs. Guangdong Xiongsu Technology | Jiangsu Broadcasting vs. ROPEOK Technology Group | Jiangsu Broadcasting vs. 360 Security Technology | Jiangsu Broadcasting vs. Songz Automobile Air |
| Zhongrun Resources vs. Bosera CMSK Industrial | Zhongrun Resources vs. Road Environment Technology | Zhongrun Resources vs. Jiangsu Broadcasting Cable | Zhongrun Resources vs. Hunan TV Broadcast |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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