Correlation Between China Reform and Zoy Home
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By analyzing existing cross correlation between China Reform Health and Zoy Home Furnishing, you can compare the effects of market volatilities on China Reform and Zoy Home 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 China Reform with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Zoy Home.
Diversification Opportunities for China Reform and Zoy Home
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Zoy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and China Reform 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 China Reform Health are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of China Reform i.e., China Reform and Zoy Home go up and down completely randomly.
Pair Corralation between China Reform and Zoy Home
Assuming the 90 days trading horizon China Reform Health is expected to under-perform the Zoy Home. But the stock apears to be less risky and, when comparing its historical volatility, China Reform Health is 1.57 times less risky than Zoy Home. The stock trades about -0.33 of its potential returns per unit of risk. The Zoy Home Furnishing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Zoy Home Furnishing on October 23, 2024 and sell it today you would earn a total of 35.00 from holding Zoy Home Furnishing or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Reform Health vs. Zoy Home Furnishing
Performance |
| Timeline |
| China Reform Health |
| Zoy Home Furnishing |
China Reform and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Zoy Home
The main advantage of trading using opposite China Reform and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| China Reform vs. Chengdu Kanghua Biological | China Reform vs. Beijing Wantai Biological | China Reform vs. Suzhou Novoprotein Scientific | China Reform vs. Aluminum Corp of |
| Zoy Home vs. BeiGene | Zoy Home vs. Kweichow Moutai Co | Zoy Home vs. Beijing Roborock Technology | Zoy Home 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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