Correlation Between Zotye Automobile and Jilin Jlu
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By analyzing existing cross correlation between Zotye Automobile Co and Jilin Jlu Communication, you can compare the effects of market volatilities on Zotye Automobile and Jilin Jlu 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 Jilin Jlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Jilin Jlu.
Diversification Opportunities for Zotye Automobile and Jilin Jlu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Jilin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Jilin Jlu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Jlu Communication 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 Jilin Jlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Jlu Communication has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Jilin Jlu go up and down completely randomly.
Pair Corralation between Zotye Automobile and Jilin Jlu
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Jilin Jlu. In addition to that, Zotye Automobile is 1.25 times more volatile than Jilin Jlu Communication. It trades about -0.01 of its total potential returns per unit of risk. Jilin Jlu Communication is currently generating about 0.03 per unit of volatility. If you would invest 780.00 in Jilin Jlu Communication on September 4, 2024 and sell it today you would earn a total of 181.00 from holding Jilin Jlu Communication or generate 23.21% 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. Jilin Jlu Communication
Performance |
| Timeline |
| Zotye Automobile |
| Jilin Jlu Communication |
Zotye Automobile and Jilin Jlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Jilin Jlu
The main advantage of trading using opposite Zotye Automobile and Jilin Jlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Jilin Jlu 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 Jilin Jlu will offset losses from the drop in Jilin Jlu's long position.| Zotye Automobile vs. Industrial and Commercial | Zotye Automobile vs. China Construction Bank | Zotye Automobile vs. Agricultural Bank of | Zotye Automobile vs. Bank of China |
| Jilin Jlu vs. China Life Insurance | Jilin Jlu vs. Cinda Securities Co | Jilin Jlu vs. Piotech Inc A | Jilin Jlu vs. Dongxing Sec 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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