Correlation Between Zhejiang Renzhi and Core Laboratories

Can any of the company-specific risk be diversified away by investing in both Zhejiang Renzhi and Core Laboratories at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zhejiang Renzhi and Core Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zhejiang Renzhi Co and Core Laboratories NV, you can compare the effects of market volatilities on Zhejiang Renzhi and Core Laboratories 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 Zhejiang Renzhi with a short position of Core Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Renzhi and Core Laboratories.

Diversification Opportunities for Zhejiang Renzhi and Core Laboratories

0.0

Correlation Coefficient

Zhejiang Renzhi  Core Laboratories

Pay attention - limited upside

The 3 months correlation between Zhejiang and Core is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Renzhi Co and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories and Zhejiang Renzhi 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 Zhejiang Renzhi Co are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of Zhejiang Renzhi i.e., Zhejiang Renzhi and Core Laboratories go up and down completely randomly.

Pair Corralation between Zhejiang Renzhi and Core Laboratories

If you would invest  1,111  in Core Laboratories NV on August 26, 2025 and sell it today you would earn a total of  363.00  from holding Core Laboratories NV or generate 32.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zhejiang Renzhi Co  vs.  Core Laboratories NV

Zhejiang Renzhi

Risk-Adjusted Performance

Mild

Over the last 90 days Zhejiang Renzhi Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Zhejiang Renzhi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Core Laboratories

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Core Laboratories NV are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile essential indicators, Core Laboratories sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zhejiang Renzhi and Core Laboratories

The main advantage of trading using opposite Zhejiang Renzhi and Core Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Renzhi position performs unexpectedly, Core Laboratories 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 Core Laboratories will offset losses from the drop in Core Laboratories' long position.

The idea behind Zhejiang Renzhi Co and Core Laboratories NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.