Correlation Between Gem Year and Zhongrun Resources
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By analyzing existing cross correlation between Gem Year Industrial Co and Zhongrun Resources Investment, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Zhongrun Resources.
Diversification Opportunities for Gem Year and Zhongrun Resources
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gem and Zhongrun is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Gem Year and Zhongrun Resources
Assuming the 90 days trading horizon Gem Year is expected to generate 3.52 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.15 times less risky than Zhongrun Resources. It trades about 0.16 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Zhongrun Resources Investment on September 26, 2024 and sell it today you would earn a total of 262.00 from holding Zhongrun Resources Investment or generate 187.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Gem Year Industrial Co vs. Zhongrun Resources Investment
Performance |
Timeline |
Gem Year Industrial |
Zhongrun Resources |
Gem Year and Zhongrun Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gem Year and Zhongrun Resources
The main advantage of trading using opposite Gem Year and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.Gem Year vs. Nanjing Putian Telecommunications | ||
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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