Correlation Between Zotye Automobile and PKU HealthCare
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By analyzing existing cross correlation between Zotye Automobile Co and PKU HealthCare Corp, you can compare the effects of market volatilities on Zotye Automobile and PKU HealthCare 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 Zotye Automobile with a short position of PKU HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and PKU HealthCare.
Diversification Opportunities for Zotye Automobile and PKU HealthCare
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and PKU is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and PKU HealthCare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKU HealthCare Corp and Zotye Automobile 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 Zotye Automobile Co are associated (or correlated) with PKU HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKU HealthCare Corp has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and PKU HealthCare go up and down completely randomly.
Pair Corralation between Zotye Automobile and PKU HealthCare
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 2.07 times more return on investment than PKU HealthCare. However, Zotye Automobile is 2.07 times more volatile than PKU HealthCare Corp. It trades about 0.1 of its potential returns per unit of risk. PKU HealthCare Corp is currently generating about 0.02 per unit of risk. If you would invest 293.00 in Zotye Automobile Co on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Zotye Automobile Co or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. PKU HealthCare Corp
Performance |
| Timeline |
| Zotye Automobile |
| PKU HealthCare Corp |
Zotye Automobile and PKU HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and PKU HealthCare
The main advantage of trading using opposite Zotye Automobile and PKU HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, PKU HealthCare 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 PKU HealthCare will offset losses from the drop in PKU HealthCare's long position.| Zotye Automobile vs. Cambricon Technologies Corp | Zotye Automobile vs. Loongson Technology Corp | Zotye Automobile vs. Shenzhen Fortune Trend | Zotye Automobile vs. Chongqing Road Bridge |
| PKU HealthCare vs. BeiGene | PKU HealthCare vs. Kweichow Moutai Co | PKU HealthCare vs. Beijing Roborock Technology | PKU HealthCare 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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