Correlation Between Zotye Automobile and China Express
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By analyzing existing cross correlation between Zotye Automobile Co and China Express Airlines, you can compare the effects of market volatilities on Zotye Automobile and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and China Express.
Diversification Opportunities for Zotye Automobile and China Express
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and China Express go up and down completely randomly.
Pair Corralation between Zotye Automobile and China Express
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 1.9 times more return on investment than China Express. However, Zotye Automobile is 1.9 times more volatile than China Express Airlines. It trades about 0.1 of its potential returns per unit of risk. China Express Airlines is currently generating about 0.13 per unit of risk. If you would invest 218.00 in Zotye Automobile Co on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Zotye Automobile Co or generate 16.97% 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. China Express Airlines
Performance |
| Timeline |
| Zotye Automobile |
| China Express Airlines |
Zotye Automobile and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and China Express
The main advantage of trading using opposite Zotye Automobile and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Zotye Automobile vs. Xinjiang Baodi Mining | Zotye Automobile vs. Quectel Wireless Solutions | Zotye Automobile vs. Shanghai Metersbonwe FashionAccessories | Zotye Automobile vs. Pengxin International Mining |
| China Express vs. Songz Automobile Air | China Express vs. Zotye Automobile Co | China Express vs. Tongling Nonferrous Metals | China Express vs. CIMC Vehicles 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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