Correlation Between Zotye Automobile and Ningbo MedicalSystem
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By analyzing existing cross correlation between Zotye Automobile Co and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Zotye Automobile and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Ningbo MedicalSystem.
Diversification Opportunities for Zotye Automobile and Ningbo MedicalSystem
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Ningbo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Zotye Automobile and Ningbo MedicalSystem
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 1.67 times more return on investment than Ningbo MedicalSystem. However, Zotye Automobile is 1.67 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 285.00 in Zotye Automobile Co on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Zotye Automobile Co or generate 1.4% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Zotye Automobile |
| Ningbo MedicalSystem |
Zotye Automobile and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Ningbo MedicalSystem
The main advantage of trading using opposite Zotye Automobile and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Zotye Automobile vs. Lutian Machinery Co | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Bank of China | Zotye Automobile vs. Gansu Jiu Steel |
| Ningbo MedicalSystem vs. Cultural Investment Holdings | Ningbo MedicalSystem vs. Gome Telecom Equipment | Ningbo MedicalSystem vs. Holitech Technology Co | Ningbo MedicalSystem vs. Zotye Automobile 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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