Correlation Between Cinda Securities and Zhongrun Resources
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By analyzing existing cross correlation between Cinda Securities Co and Zhongrun Resources Investment, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Zhongrun Resources.
Diversification Opportunities for Cinda Securities and Zhongrun Resources
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cinda and Zhongrun is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Cinda Securities and Zhongrun Resources
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.5 times more return on investment than Zhongrun Resources. However, Cinda Securities Co is 1.99 times less risky than Zhongrun Resources. It trades about -0.07 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.28 per unit of risk. If you would invest 1,654 in Cinda Securities Co on September 13, 2024 and sell it today you would lose (58.00) from holding Cinda Securities Co or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Cinda Securities |
| Zhongrun Resources |
Cinda Securities and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Zhongrun Resources
The main advantage of trading using opposite Cinda Securities and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China State Construction | Cinda Securities vs. China Railway Group |
| Zhongrun Resources vs. China Life Insurance | Zhongrun Resources vs. Cinda Securities Co | Zhongrun Resources vs. Piotech Inc A | Zhongrun Resources vs. Dongxing Sec Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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