Correlation Between Zoomlion Heavy and Guangdong TianYiMa
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By analyzing existing cross correlation between Zoomlion Heavy Industry and Guangdong TianYiMa Information, you can compare the effects of market volatilities on Zoomlion Heavy and Guangdong TianYiMa 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 Guangdong TianYiMa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and Guangdong TianYiMa.
Diversification Opportunities for Zoomlion Heavy and Guangdong TianYiMa
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zoomlion and Guangdong is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and Guangdong TianYiMa Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong TianYiMa 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 Guangdong TianYiMa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong TianYiMa has no effect on the direction of Zoomlion Heavy i.e., Zoomlion Heavy and Guangdong TianYiMa go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and Guangdong TianYiMa
Assuming the 90 days trading horizon Zoomlion Heavy is expected to generate 1.31 times less return on investment than Guangdong TianYiMa. But when comparing it to its historical volatility, Zoomlion Heavy Industry is 2.44 times less risky than Guangdong TianYiMa. It trades about 0.04 of its potential returns per unit of risk. Guangdong TianYiMa Information is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,627 in Guangdong TianYiMa Information on October 16, 2024 and sell it today you would earn a total of 45.00 from holding Guangdong TianYiMa Information or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoomlion Heavy Industry vs. Guangdong TianYiMa Information
Performance |
| Timeline |
| Zoomlion Heavy Industry |
| Guangdong TianYiMa |
Zoomlion Heavy and Guangdong TianYiMa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoomlion Heavy and Guangdong TianYiMa
The main advantage of trading using opposite Zoomlion Heavy and Guangdong TianYiMa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy position performs unexpectedly, Guangdong TianYiMa 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 Guangdong TianYiMa will offset losses from the drop in Guangdong TianYiMa's long position.| Zoomlion Heavy vs. Guangdong TianYiMa Information | Zoomlion Heavy vs. Hangzhou Arcvideo Technology | Zoomlion Heavy vs. Zhengzhou Coal Mining | Zoomlion Heavy vs. Chenzhou Jingui Silver |
| Guangdong TianYiMa vs. Guangdong Xiongsu Technology | Guangdong TianYiMa vs. Linewell Software Co | Guangdong TianYiMa vs. Sihui Fuji Electronics | Guangdong TianYiMa vs. Tianjin Ruixin 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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