Correlation Between Zhongrun Resources and SuZhou ChunXing
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By analyzing existing cross correlation between Zhongrun Resources Investment and SuZhou ChunXing Precision, you can compare the effects of market volatilities on Zhongrun Resources and SuZhou ChunXing 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 Zhongrun Resources with a short position of SuZhou ChunXing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and SuZhou ChunXing.
Diversification Opportunities for Zhongrun Resources and SuZhou ChunXing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and SuZhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and SuZhou ChunXing Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuZhou ChunXing Precision and Zhongrun Resources 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 Zhongrun Resources Investment are associated (or correlated) with SuZhou ChunXing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuZhou ChunXing Precision has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and SuZhou ChunXing go up and down completely randomly.
Pair Corralation between Zhongrun Resources and SuZhou ChunXing
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 0.68 times more return on investment than SuZhou ChunXing. However, Zhongrun Resources Investment is 1.47 times less risky than SuZhou ChunXing. It trades about 0.45 of its potential returns per unit of risk. SuZhou ChunXing Precision is currently generating about 0.16 per unit of risk. If you would invest 139.00 in Zhongrun Resources Investment on September 25, 2024 and sell it today you would earn a total of 226.00 from holding Zhongrun Resources Investment or generate 162.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.67% |
Values | Daily Returns |
Zhongrun Resources Investment vs. SuZhou ChunXing Precision
Performance |
Timeline |
Zhongrun Resources |
SuZhou ChunXing Precision |
Zhongrun Resources and SuZhou ChunXing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongrun Resources and SuZhou ChunXing
The main advantage of trading using opposite Zhongrun Resources and SuZhou ChunXing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, SuZhou ChunXing 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 SuZhou ChunXing will offset losses from the drop in SuZhou ChunXing's long position.Zhongrun Resources vs. PetroChina Co Ltd | Zhongrun Resources vs. China Mobile Limited | Zhongrun Resources vs. CNOOC Limited | Zhongrun Resources vs. Ping An Insurance |
SuZhou ChunXing vs. Wanhua Chemical Group | SuZhou ChunXing vs. Baoshan Iron Steel | SuZhou ChunXing vs. Shandong Gold Mining | SuZhou ChunXing vs. Rongsheng Petrochemical 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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