Correlation Between Zotye Automobile and Shenzhen Bioeasy
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By analyzing existing cross correlation between Zotye Automobile Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Zotye Automobile and Shenzhen Bioeasy 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 Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Shenzhen Bioeasy.
Diversification Opportunities for Zotye Automobile and Shenzhen Bioeasy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy 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 Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Zotye Automobile and Shenzhen Bioeasy
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 3.9 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, Zotye Automobile Co is 1.45 times less risky than Shenzhen Bioeasy. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 925.00 in Shenzhen Bioeasy Biotechnology on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Shenzhen Bioeasy Biotechnology or generate 8.86% 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. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Zotye Automobile |
| Shenzhen Bioeasy Bio |
Zotye Automobile and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Shenzhen Bioeasy
The main advantage of trading using opposite Zotye Automobile and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Shenzhen Bioeasy 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 Bioeasy will offset losses from the drop in Shenzhen Bioeasy'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 |
| Shenzhen Bioeasy vs. Cultural Investment Holdings | Shenzhen Bioeasy vs. Gome Telecom Equipment | Shenzhen Bioeasy vs. Holitech Technology Co | Shenzhen Bioeasy 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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