Correlation Between Zhongrun Resources and Allmed Medical
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By analyzing existing cross correlation between Zhongrun Resources Investment and Allmed Medical Products, you can compare the effects of market volatilities on Zhongrun Resources and Allmed Medical 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 Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Allmed Medical.
Diversification Opportunities for Zhongrun Resources and Allmed Medical
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Allmed is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products 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 Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Allmed Medical go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Allmed Medical
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.25 times more return on investment than Allmed Medical. However, Zhongrun Resources is 1.25 times more volatile than Allmed Medical Products. It trades about 0.47 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.1 per unit of risk. If you would invest 140.00 in Zhongrun Resources Investment on September 26, 2024 and sell it today you would earn a total of 243.00 from holding Zhongrun Resources Investment or generate 173.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.31% |
Values | Daily Returns |
Zhongrun Resources Investment vs. Allmed Medical Products
Performance |
Timeline |
Zhongrun Resources |
Allmed Medical Products |
Zhongrun Resources and Allmed Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongrun Resources and Allmed Medical
The main advantage of trading using opposite Zhongrun Resources and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical'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 |
Allmed Medical vs. New China Life | Allmed Medical vs. Ming Yang Smart | Allmed Medical vs. 159681 | Allmed Medical vs. 159005 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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