Correlation Between Zotye Automobile and Zhejiang JIULI
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By analyzing existing cross correlation between Zotye Automobile Co and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Zotye Automobile and Zhejiang JIULI 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 Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Zhejiang JIULI.
Diversification Opportunities for Zotye Automobile and Zhejiang JIULI
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zotye and Zhejiang is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi 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 Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Zotye Automobile and Zhejiang JIULI
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Zhejiang JIULI. In addition to that, Zotye Automobile is 3.19 times more volatile than Zhejiang JIULI Hi tech. It trades about -0.01 of its total potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.05 per unit of volatility. If you would invest 2,327 in Zhejiang JIULI Hi tech on October 26, 2024 and sell it today you would earn a total of 108.00 from holding Zhejiang JIULI Hi tech or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Zotye Automobile |
| Zhejiang JIULI Hi |
Zotye Automobile and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Zhejiang JIULI
The main advantage of trading using opposite Zotye Automobile and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Zotye Automobile vs. Hubei Geoway Investment | Zotye Automobile vs. Bingo Software Co | Zotye Automobile vs. Shanghai Material Trading | Zotye Automobile vs. Kunwu Jiuding Investment |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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