Correlation Between Shenyang Huitian and Zotye Automobile
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Zotye Automobile Co, you can compare the effects of market volatilities on Shenyang Huitian and Zotye Automobile 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 Shenyang Huitian with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Zotye Automobile.
Diversification Opportunities for Shenyang Huitian and Zotye Automobile
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Zotye is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Zotye Automobile go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Zotye Automobile
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.6 times more return on investment than Zotye Automobile. However, Shenyang Huitian Thermal is 1.67 times less risky than Zotye Automobile. It trades about -0.09 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.26 per unit of risk. If you would invest 357.00 in Shenyang Huitian Thermal on October 25, 2024 and sell it today you would lose (17.00) from holding Shenyang Huitian Thermal or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Zotye Automobile Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Zotye Automobile |
Shenyang Huitian and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Zotye Automobile
The main advantage of trading using opposite Shenyang Huitian and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Shenyang Huitian vs. Gansu Jiu Steel | Shenyang Huitian vs. Ming Yang Smart | Shenyang Huitian vs. Aba Chemicals Corp | Shenyang Huitian vs. Loctek Ergonomic Technology |
| Zotye Automobile vs. HUAQIN TECHNOLOGY LTD | Zotye Automobile vs. Huizhou Speed Wireless | Zotye Automobile vs. UCloud Technology Co | Zotye Automobile vs. HanS Laser Tech |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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