Correlation Between China Minmetals and Zotye Automobile
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By analyzing existing cross correlation between China Minmetals Rare and Zotye Automobile Co, you can compare the effects of market volatilities on China Minmetals 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 China Minmetals with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and Zotye Automobile.
Diversification Opportunities for China Minmetals and Zotye Automobile
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Zotye is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and China Minmetals 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 Minmetals Rare 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 China Minmetals i.e., China Minmetals and Zotye Automobile go up and down completely randomly.
Pair Corralation between China Minmetals and Zotye Automobile
Assuming the 90 days trading horizon China Minmetals Rare is expected to generate 0.52 times more return on investment than Zotye Automobile. However, China Minmetals Rare is 1.91 times less risky than Zotye Automobile. It trades about -0.08 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 2,909 in China Minmetals Rare on October 25, 2024 and sell it today you would lose (103.00) from holding China Minmetals Rare or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. Zotye Automobile Co
Performance |
| Timeline |
| China Minmetals Rare |
| Zotye Automobile |
China Minmetals and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and Zotye Automobile
The main advantage of trading using opposite China Minmetals and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals 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.| China Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Rongsheng Petrochemical Co |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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