Correlation Between Zotye Automobile and Longmaster Information
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By analyzing existing cross correlation between Zotye Automobile Co and Longmaster Information Tech, you can compare the effects of market volatilities on Zotye Automobile and Longmaster Information 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 Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Longmaster Information.
Diversification Opportunities for Zotye Automobile and Longmaster Information
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Longmaster is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information 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 Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Longmaster Information go up and down completely randomly.
Pair Corralation between Zotye Automobile and Longmaster Information
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 1.58 times less return on investment than Longmaster Information. But when comparing it to its historical volatility, Zotye Automobile Co is 1.0 times less risky than Longmaster Information. It trades about 0.1 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Longmaster Information Tech on September 13, 2024 and sell it today you would earn a total of 241.00 from holding Longmaster Information Tech or generate 15.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Longmaster Information Tech
Performance |
| Timeline |
| Zotye Automobile |
| Longmaster Information |
Zotye Automobile and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Longmaster Information
The main advantage of trading using opposite Zotye Automobile and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Zotye Automobile vs. Cambricon Technologies Corp | Zotye Automobile vs. Loongson Technology Corp | Zotye Automobile vs. Shenzhen Fortune Trend | Zotye Automobile vs. Chongqing Road Bridge |
| Longmaster Information vs. China Mobile Limited | Longmaster Information vs. Agricultural Bank of | Longmaster Information vs. Industrial and Commercial | Longmaster Information vs. China State Construction |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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