Correlation Between Lepu Medical and Zhongrun Resources
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lepu Medical Tech and Zhongrun Resources Investment, you can compare the effects of market volatilities on Lepu Medical 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 Lepu Medical with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepu Medical and Zhongrun Resources.
Diversification Opportunities for Lepu Medical and Zhongrun Resources
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lepu and Zhongrun is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lepu Medical Tech and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Lepu Medical 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 Lepu Medical Tech 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 Lepu Medical i.e., Lepu Medical and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Lepu Medical and Zhongrun Resources
Assuming the 90 days trading horizon Lepu Medical Tech is expected to under-perform the Zhongrun Resources. But the stock apears to be less risky and, when comparing its historical volatility, Lepu Medical Tech is 1.57 times less risky than Zhongrun Resources. The stock trades about -0.04 of its potential returns per unit of risk. The Zhongrun Resources Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Zhongrun Resources Investment on September 26, 2024 and sell it today you would earn a total of 45.00 from holding Zhongrun Resources Investment or generate 13.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Lepu Medical Tech vs. Zhongrun Resources Investment
Performance |
Timeline |
Lepu Medical Tech |
Zhongrun Resources |
Lepu Medical and Zhongrun Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lepu Medical and Zhongrun Resources
The main advantage of trading using opposite Lepu Medical and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepu Medical 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.Lepu Medical vs. Hengkang Medical Group | Lepu Medical vs. Allmed Medical Products | Lepu Medical vs. Zhongrun Resources Investment | Lepu Medical vs. Harbin Hatou Investment |
Zhongrun Resources vs. PetroChina Co Ltd | Zhongrun Resources vs. China Mobile Limited | Zhongrun Resources vs. CNOOC Limited | Zhongrun Resources vs. Ping An Insurance |
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.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |