Correlation Between Zotye Automobile and Shenzhen Mindray
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By analyzing existing cross correlation between Zotye Automobile Co and Shenzhen Mindray Bio Medical, you can compare the effects of market volatilities on Zotye Automobile and Shenzhen Mindray 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 Shenzhen Mindray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Shenzhen Mindray.
Diversification Opportunities for Zotye Automobile and Shenzhen Mindray
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zotye and Shenzhen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Shenzhen Mindray Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Mindray Bio 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 Shenzhen Mindray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Mindray Bio has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Shenzhen Mindray go up and down completely randomly.
Pair Corralation between Zotye Automobile and Shenzhen Mindray
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 2.53 times more return on investment than Shenzhen Mindray. However, Zotye Automobile is 2.53 times more volatile than Shenzhen Mindray Bio Medical. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Mindray Bio Medical is currently generating about -0.23 per unit of risk. If you would invest 293.00 in Zotye Automobile Co on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Zotye Automobile Co or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Shenzhen Mindray Bio Medical
Performance |
| Timeline |
| Zotye Automobile |
| Shenzhen Mindray Bio |
Zotye Automobile and Shenzhen Mindray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Shenzhen Mindray
The main advantage of trading using opposite Zotye Automobile and Shenzhen Mindray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Shenzhen Mindray 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 Shenzhen Mindray will offset losses from the drop in Shenzhen Mindray'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 |
| Shenzhen Mindray vs. Industrial and Commercial | Shenzhen Mindray vs. Kweichow Moutai Co | Shenzhen Mindray vs. Agricultural Bank of | Shenzhen Mindray vs. China Mobile Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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