Correlation Between Zoomlion Heavy and Taiji Computer
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By analyzing existing cross correlation between Zoomlion Heavy Industry and Taiji Computer Corp, you can compare the effects of market volatilities on Zoomlion Heavy and Taiji Computer 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 Zoomlion Heavy with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and Taiji Computer.
Diversification Opportunities for Zoomlion Heavy and Taiji Computer
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoomlion and Taiji is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and Zoomlion Heavy 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 Zoomlion Heavy Industry are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Zoomlion Heavy i.e., Zoomlion Heavy and Taiji Computer go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and Taiji Computer
Assuming the 90 days trading horizon Zoomlion Heavy Industry is expected to generate 0.66 times more return on investment than Taiji Computer. However, Zoomlion Heavy Industry is 1.52 times less risky than Taiji Computer. It trades about 0.14 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.15 per unit of risk. If you would invest 695.00 in Zoomlion Heavy Industry on September 26, 2024 and sell it today you would earn a total of 29.00 from holding Zoomlion Heavy Industry or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoomlion Heavy Industry vs. Taiji Computer Corp
Performance |
| Timeline |
| Zoomlion Heavy Industry |
| Taiji Computer Corp |
Zoomlion Heavy and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoomlion Heavy and Taiji Computer
The main advantage of trading using opposite Zoomlion Heavy and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
| Taiji Computer vs. Kweichow Moutai Co | Taiji Computer vs. Shenzhen Mindray Bio Medical | Taiji Computer vs. Jiangsu Pacific Quartz | Taiji Computer vs. G bits Network Technology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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