Correlation Between Zotye Automobile and Penghua Shenzhen
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By analyzing existing cross correlation between Zotye Automobile Co and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Zotye Automobile and Penghua Shenzhen 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 Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Penghua Shenzhen.
Diversification Opportunities for Zotye Automobile and Penghua Shenzhen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zotye and Penghua is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy 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 Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Zotye Automobile and Penghua Shenzhen
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Penghua Shenzhen. In addition to that, Zotye Automobile is 4.76 times more volatile than Penghua Shenzhen Energy. It trades about -0.01 of its total potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.08 per unit of volatility. If you would invest 511.00 in Penghua Shenzhen Energy on August 29, 2024 and sell it today you would earn a total of 90.00 from holding Penghua Shenzhen Energy or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Zotye Automobile |
| Penghua Shenzhen Energy |
Zotye Automobile and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Penghua Shenzhen
The main advantage of trading using opposite Zotye Automobile and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Zotye Automobile vs. Agricultural Bank of | Zotye Automobile vs. Industrial and Commercial | Zotye Automobile vs. Bank of China | Zotye Automobile vs. China Construction Bank |
| Penghua Shenzhen vs. Zhongtong Guomai Communication | Penghua Shenzhen vs. Bus Online Co | Penghua Shenzhen vs. Guangzhou Dongfang Hotel | Penghua Shenzhen vs. Eastern Communications 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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