Correlation Between Zotye Automobile and Suzhou Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zotye Automobile Co and Suzhou Industrial Park, you can compare the effects of market volatilities on Zotye Automobile and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Suzhou Industrial.
Diversification Opportunities for Zotye Automobile and Suzhou Industrial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zotye and Suzhou is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Zotye Automobile and Suzhou Industrial
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 0.68 times more return on investment than Suzhou Industrial. However, Zotye Automobile Co is 1.48 times less risky than Suzhou Industrial. It trades about -0.24 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about -0.18 per unit of risk. If you would invest 251.00 in Zotye Automobile Co on October 29, 2024 and sell it today you would lose (42.00) from holding Zotye Automobile Co or give up 16.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Suzhou Industrial Park
Performance |
| Timeline |
| Zotye Automobile |
| Suzhou Industrial Park |
Zotye Automobile and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Suzhou Industrial
The main advantage of trading using opposite Zotye Automobile and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.The idea behind Zotye Automobile Co and Suzhou Industrial Park pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Suzhou Industrial vs. Runjian Communication Co | Suzhou Industrial vs. Healthcare Co | Suzhou Industrial vs. Tianjin Hi Tech Development | Suzhou Industrial vs. Meinian Onehealth Healthcare |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |