Correlation Between Zotye Automobile and China Asset
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By analyzing existing cross correlation between Zotye Automobile Co and China Asset Management, you can compare the effects of market volatilities on Zotye Automobile and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and China Asset.
Diversification Opportunities for Zotye Automobile and China Asset
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zotye and China is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and China Asset go up and down completely randomly.
Pair Corralation between Zotye Automobile and China Asset
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the China Asset. In addition to that, Zotye Automobile is 4.37 times more volatile than China Asset Management. It trades about -0.01 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.09 per unit of volatility. If you would invest 266.00 in China Asset Management on November 27, 2024 and sell it today you would earn a total of 109.00 from holding China Asset Management or generate 40.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. China Asset Management
Performance |
| Timeline |
| Zotye Automobile |
| China Asset Management |
Zotye Automobile and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and China Asset
The main advantage of trading using opposite Zotye Automobile and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Zotye Automobile vs. Dhc Software Co | Zotye Automobile vs. YiDong Electronics Technology | Zotye Automobile vs. LianChuang Electronic Technology | Zotye Automobile vs. Circuit Fabology Microelectronics |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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