Correlation Between Zhongrun Resources and Xinya Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongrun Resources Investment and Xinya Electronic Co, you can compare the effects of market volatilities on Zhongrun Resources and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Xinya Electronic.
Diversification Opportunities for Zhongrun Resources and Xinya Electronic
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongrun and Xinya is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Xinya Electronic go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Xinya Electronic
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 1.34 times more return on investment than Xinya Electronic. However, Zhongrun Resources is 1.34 times more volatile than Xinya Electronic Co. It trades about 0.46 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.18 per unit of risk. If you would invest 132.00 in Zhongrun Resources Investment on September 24, 2024 and sell it today you would earn a total of 227.00 from holding Zhongrun Resources Investment or generate 171.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Zhongrun Resources Investment vs. Xinya Electronic Co
Performance |
Timeline |
Zhongrun Resources |
Xinya Electronic |
Zhongrun Resources and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongrun Resources and Xinya Electronic
The main advantage of trading using opposite Zhongrun Resources and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic'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 |
Xinya Electronic vs. Kweichow Moutai Co | Xinya Electronic vs. Contemporary Amperex Technology | Xinya Electronic vs. G bits Network Technology | Xinya Electronic vs. BYD Co Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |