Correlation Between Zotye Automobile and Xinjiang Communications
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By analyzing existing cross correlation between Zotye Automobile Co and Xinjiang Communications Construction, you can compare the effects of market volatilities on Zotye Automobile and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Xinjiang Communications.
Diversification Opportunities for Zotye Automobile and Xinjiang Communications
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Xinjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Zotye Automobile and Xinjiang Communications
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Xinjiang Communications. In addition to that, Zotye Automobile is 1.28 times more volatile than Xinjiang Communications Construction. It trades about -0.02 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.01 per unit of volatility. If you would invest 1,312 in Xinjiang Communications Construction on September 3, 2024 and sell it today you would lose (27.00) from holding Xinjiang Communications Construction or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Zotye Automobile |
| Xinjiang Communications |
Zotye Automobile and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Xinjiang Communications
The main advantage of trading using opposite Zotye Automobile and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' 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 |
| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology 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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