Correlation Between Zotye Automobile and Jinhe Biotechnology
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By analyzing existing cross correlation between Zotye Automobile Co and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Zotye Automobile and Jinhe Biotechnology 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 Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Jinhe Biotechnology.
Diversification Opportunities for Zotye Automobile and Jinhe Biotechnology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Jinhe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology 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 Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Zotye Automobile and Jinhe Biotechnology
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 2.41 times more return on investment than Jinhe Biotechnology. However, Zotye Automobile is 2.41 times more volatile than Jinhe Biotechnology Co. It trades about 0.1 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.11 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. Jinhe Biotechnology Co
Performance |
| Timeline |
| Zotye Automobile |
| Jinhe Biotechnology |
Zotye Automobile and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Jinhe Biotechnology
The main advantage of trading using opposite Zotye Automobile and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology'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 |
| Jinhe Biotechnology vs. BeiGene | Jinhe Biotechnology vs. Kweichow Moutai Co | Jinhe Biotechnology vs. Beijing Roborock Technology | Jinhe Biotechnology 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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