Correlation Between Zotye Automobile and Zhonghong Pulin
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By analyzing existing cross correlation between Zotye Automobile Co and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Zotye Automobile and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Zhonghong Pulin.
Diversification Opportunities for Zotye Automobile and Zhonghong Pulin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Zhonghong is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Zotye Automobile and Zhonghong Pulin
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Zhonghong Pulin. In addition to that, Zotye Automobile is 2.22 times more volatile than Zhonghong Pulin Medical. It trades about -0.24 of its total potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about -0.18 per unit of volatility. If you would invest 1,358 in Zhonghong Pulin Medical on October 22, 2024 and sell it today you would lose (89.00) from holding Zhonghong Pulin Medical or give up 6.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zotye Automobile Co vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Zotye Automobile |
| Zhonghong Pulin Medical |
Zotye Automobile and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Zhonghong Pulin
The main advantage of trading using opposite Zotye Automobile and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Zotye Automobile vs. Henan Shuanghui Investment | Zotye Automobile vs. Tieling Newcity Investment | Zotye Automobile vs. China Everbright Bank | Zotye Automobile vs. Luyin Investment Group |
| Zhonghong Pulin vs. Puya Semiconductor Shanghai | Zhonghong Pulin vs. Suzhou Oriental Semiconductor | Zhonghong Pulin vs. GRINM Semiconductor Materials | Zhonghong Pulin vs. StarPower Semiconductor |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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