Correlation Between Zotye Automobile and Dezhan HealthCare
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By analyzing existing cross correlation between Zotye Automobile Co and Dezhan HealthCare Co, you can compare the effects of market volatilities on Zotye Automobile and Dezhan 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 Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Dezhan HealthCare.
Diversification Opportunities for Zotye Automobile and Dezhan HealthCare
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Dezhan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare 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 Dezhan HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dezhan HealthCare has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Zotye Automobile and Dezhan HealthCare
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 1.24 times more return on investment than Dezhan HealthCare. However, Zotye Automobile is 1.24 times more volatile than Dezhan HealthCare Co. It trades about 0.28 of its potential returns per unit of risk. Dezhan HealthCare Co is currently generating about 0.2 per unit of risk. If you would invest 183.00 in Zotye Automobile Co on September 13, 2024 and sell it today you would earn a total of 135.00 from holding Zotye Automobile Co or generate 73.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Dezhan HealthCare Co
Performance |
| Timeline |
| Zotye Automobile |
| Dezhan HealthCare |
Zotye Automobile and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Dezhan HealthCare
The main advantage of trading using opposite Zotye Automobile and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Dezhan 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 Dezhan HealthCare will offset losses from the drop in Dezhan 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 |
| Dezhan HealthCare vs. Zhejiang Xiantong RubberPlastic | Dezhan HealthCare vs. Ningbo Fangzheng Automobile | Dezhan HealthCare vs. Zhejiang Qianjiang Motorcycle | Dezhan HealthCare vs. Sinomach Automobile Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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