Correlation Between Zhongrun Resources and Jiangsu Xinning
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongrun Resources Investment and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Zhongrun Resources and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongrun Resources and Jiangsu Xinning.
Diversification Opportunities for Zhongrun Resources and Jiangsu Xinning
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongrun and Jiangsu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhongrun Resources Investment and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Zhongrun Resources i.e., Zhongrun Resources and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Zhongrun Resources and Jiangsu Xinning
Assuming the 90 days trading horizon Zhongrun Resources Investment is expected to generate 0.88 times more return on investment than Jiangsu Xinning. However, Zhongrun Resources Investment is 1.13 times less risky than Jiangsu Xinning. It trades about 0.39 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.22 per unit of risk. If you would invest 148.00 in Zhongrun Resources Investment on September 5, 2024 and sell it today you would earn a total of 194.00 from holding Zhongrun Resources Investment or generate 131.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.28% |
Values | Daily Returns |
Zhongrun Resources Investment vs. Jiangsu Xinning Modern
Performance |
Timeline |
Zhongrun Resources |
Jiangsu Xinning Modern |
Zhongrun Resources and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongrun Resources and Jiangsu Xinning
The main advantage of trading using opposite Zhongrun Resources and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongrun Resources position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.Zhongrun Resources vs. Allmed Medical Products | Zhongrun Resources vs. CareRay Digital Medical | Zhongrun Resources vs. Dalian Thermal Power | Zhongrun Resources vs. Double Medical Technology |
Jiangsu Xinning vs. Metro Investment Development | Jiangsu Xinning vs. Zhongrun Resources Investment | Jiangsu Xinning vs. Anhui Fuhuang Steel | Jiangsu Xinning vs. City Development Environment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |