Correlation Between Zotye Automobile and Jiamei Food
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By analyzing existing cross correlation between Zotye Automobile Co and Jiamei Food Packaging, you can compare the effects of market volatilities on Zotye Automobile and Jiamei Food 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 Jiamei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Jiamei Food.
Diversification Opportunities for Zotye Automobile and Jiamei Food
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Jiamei is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Jiamei Food Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiamei Food Packaging 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 Jiamei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiamei Food Packaging has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Jiamei Food go up and down completely randomly.
Pair Corralation between Zotye Automobile and Jiamei Food
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 3.06 times more return on investment than Jiamei Food. However, Zotye Automobile is 3.06 times more volatile than Jiamei Food Packaging. It trades about 0.1 of its potential returns per unit of risk. Jiamei Food Packaging is currently generating about 0.1 per unit of risk. If you would invest 233.00 in Zotye Automobile Co on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Zotye Automobile Co or generate 9.01% 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. Jiamei Food Packaging
Performance |
| Timeline |
| Zotye Automobile |
| Jiamei Food Packaging |
Zotye Automobile and Jiamei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Jiamei Food
The main advantage of trading using opposite Zotye Automobile and Jiamei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Jiamei Food 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 Jiamei Food will offset losses from the drop in Jiamei Food's long position.| Zotye Automobile vs. Youyou Foods Co | Zotye Automobile vs. Sunwave Communications Co | Zotye Automobile vs. New Hope Dairy | Zotye Automobile vs. Suzhou Weizhixiang Food |
| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Shandong Gold Mining |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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