Correlation Between Hunan Investment and Zoje Resources
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By analyzing existing cross correlation between Hunan Investment Group and Zoje Resources Investment, you can compare the effects of market volatilities on Hunan Investment and Zoje Resources 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 Hunan Investment with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Zoje Resources.
Diversification Opportunities for Hunan Investment and Zoje Resources
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Zoje is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Hunan Investment i.e., Hunan Investment and Zoje Resources go up and down completely randomly.
Pair Corralation between Hunan Investment and Zoje Resources
Assuming the 90 days trading horizon Hunan Investment is expected to generate 1.02 times less return on investment than Zoje Resources. But when comparing it to its historical volatility, Hunan Investment Group is 1.37 times less risky than Zoje Resources. It trades about 0.27 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 173.00 in Zoje Resources Investment on August 25, 2024 and sell it today you would earn a total of 67.00 from holding Zoje Resources Investment or generate 38.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Zoje Resources Investment
Performance |
| Timeline |
| Hunan Investment |
| Zoje Resources Investment |
Hunan Investment and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Zoje Resources
The main advantage of trading using opposite Hunan Investment and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Hunan Investment vs. Fiberhome Telecommunication Technologies | Hunan Investment vs. UE Furniture Co | Hunan Investment vs. Guangzhou Shangpin Home | Hunan Investment vs. Heren Health Co |
| Zoje Resources vs. Guangzhou Dongfang Hotel | Zoje Resources vs. BTG Hotels Group | Zoje Resources vs. Hunan Investment Group | Zoje Resources vs. Chahua Modern Housewares |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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