Correlation Between North Copper and Zoy Home
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By analyzing existing cross correlation between North Copper Shanxi and Zoy Home Furnishing, you can compare the effects of market volatilities on North Copper 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 North Copper with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Zoy Home.
Diversification Opportunities for North Copper and Zoy Home
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between North and Zoy is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi 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 North Copper 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 North Copper Shanxi 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 North Copper i.e., North Copper and Zoy Home go up and down completely randomly.
Pair Corralation between North Copper and Zoy Home
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 0.88 times more return on investment than Zoy Home. However, North Copper Shanxi is 1.14 times less risky than Zoy Home. It trades about 0.06 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.01 per unit of risk. If you would invest 857.00 in North Copper Shanxi on October 30, 2024 and sell it today you would earn a total of 49.00 from holding North Copper Shanxi or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. Zoy Home Furnishing
Performance |
| Timeline |
| North Copper Shanxi |
| Zoy Home Furnishing |
North Copper and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and Zoy Home
The main advantage of trading using opposite North Copper and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper 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.| North Copper vs. Citic Guoan Wine | North Copper vs. Shanghai Yaoji Playing | North Copper vs. Nuode Investment Co | North Copper vs. Hunan Investment Group |
| Zoy Home vs. PKU HealthCare Corp | Zoy Home vs. Elite Color Environmental | Zoy Home vs. Sinocat Environmental Technology | Zoy Home vs. Hangzhou Guotai Environmental |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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