Correlation Between Zotye Automobile and Andon Health
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By analyzing existing cross correlation between Zotye Automobile Co and Andon Health Co, you can compare the effects of market volatilities on Zotye Automobile and Andon Health 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 Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Andon Health.
Diversification Opportunities for Zotye Automobile and Andon Health
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Andon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health 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 Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Andon Health go up and down completely randomly.
Pair Corralation between Zotye Automobile and Andon Health
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 3.14 times more return on investment than Andon Health. However, Zotye Automobile is 3.14 times more volatile than Andon Health Co. It trades about 0.13 of its potential returns per unit of risk. Andon Health Co is currently generating about -0.3 per unit of risk. If you would invest 285.00 in Zotye Automobile Co on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Zotye Automobile Co or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Andon Health Co
Performance |
| Timeline |
| Zotye Automobile |
| Andon Health |
Zotye Automobile and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Andon Health
The main advantage of trading using opposite Zotye Automobile and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.| Zotye Automobile vs. Lutian Machinery Co | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Bank of China | Zotye Automobile vs. Gansu Jiu Steel |
| Andon Health vs. Cultural Investment Holdings | Andon Health vs. Gome Telecom Equipment | Andon Health vs. Holitech Technology Co | Andon Health vs. Zotye 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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