Correlation Between Zoomlion Heavy and China Citic
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By analyzing existing cross correlation between Zoomlion Heavy Industry and China Citic Bank, you can compare the effects of market volatilities on Zoomlion Heavy and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and China Citic.
Diversification Opportunities for Zoomlion Heavy and China Citic
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zoomlion and China is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Zoomlion Heavy i.e., Zoomlion Heavy and China Citic go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and China Citic
Assuming the 90 days trading horizon Zoomlion Heavy Industry is expected to under-perform the China Citic. In addition to that, Zoomlion Heavy is 1.05 times more volatile than China Citic Bank. It trades about -0.04 of its total potential returns per unit of risk. China Citic Bank is currently generating about 0.0 per unit of volatility. If you would invest 670.00 in China Citic Bank on October 15, 2024 and sell it today you would lose (7.00) from holding China Citic Bank or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoomlion Heavy Industry vs. China Citic Bank
Performance |
| Timeline |
| Zoomlion Heavy Industry |
| China Citic Bank |
Zoomlion Heavy and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoomlion Heavy and China Citic
The main advantage of trading using opposite Zoomlion Heavy and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic's long position.| Zoomlion Heavy vs. Southern PublishingMedia Co | Zoomlion Heavy vs. Shenzhen SDG Information | Zoomlion Heavy vs. Dawning Information Industry | Zoomlion Heavy vs. Sportsoul Co Ltd |
| China Citic vs. Sunwave Communications Co | China Citic vs. Hubei Yingtong Telecommunication | China Citic vs. Nanjing Putian Telecommunications | China Citic vs. Bank of Communications |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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