Correlation Between Dawning Information and Zhongrun Resources
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By analyzing existing cross correlation between Dawning Information Industry and Zhongrun Resources Investment, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Zhongrun Resources.
Diversification Opportunities for Dawning Information and Zhongrun Resources
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and Zhongrun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Dawning Information and Zhongrun Resources
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 0.9 times more return on investment than Zhongrun Resources. However, Dawning Information Industry is 1.11 times less risky than Zhongrun Resources. It trades about 0.09 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.02 per unit of risk. If you would invest 2,183 in Dawning Information Industry on September 12, 2024 and sell it today you would earn a total of 5,311 from holding Dawning Information Industry or generate 243.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Dawning Information Industry vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Dawning Information |
| Zhongrun Resources |
Dawning Information and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Zhongrun Resources
The main advantage of trading using opposite Dawning Information and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Gansu Jiu Steel | Dawning Information vs. Shandong Mining Machinery | Dawning Information vs. Aba Chemicals Corp | Dawning Information vs. BlueFocus Communication Group |
| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources vs. Bank of China | Zhongrun Resources vs. Agricultural Bank of |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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