Correlation Between Zotye Automobile and Techshine Electronics
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By analyzing existing cross correlation between Zotye Automobile Co and Techshine Electronics Co, you can compare the effects of market volatilities on Zotye Automobile and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Techshine Electronics.
Diversification Opportunities for Zotye Automobile and Techshine Electronics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Techshine is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Techshine Electronics go up and down completely randomly.
Pair Corralation between Zotye Automobile and Techshine Electronics
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Techshine Electronics. In addition to that, Zotye Automobile is 1.16 times more volatile than Techshine Electronics Co. It trades about -0.02 of its total potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 1,969 in Techshine Electronics Co on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Techshine Electronics Co or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Techshine Electronics Co
Performance |
| Timeline |
| Zotye Automobile |
| Techshine Electronics |
Zotye Automobile and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Techshine Electronics
The main advantage of trading using opposite Zotye Automobile and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.| Zotye Automobile vs. Xinjiang Baodi Mining | Zotye Automobile vs. Quectel Wireless Solutions | Zotye Automobile vs. Shanghai Metersbonwe FashionAccessories | Zotye Automobile vs. Pengxin International Mining |
| Techshine Electronics vs. Agricultural Bank of | Techshine Electronics vs. China Construction Bank | Techshine Electronics vs. Postal Savings Bank | Techshine Electronics vs. Bank of Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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