Correlation Between Zotye Automobile and Beijing Wandong
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By analyzing existing cross correlation between Zotye Automobile Co and Beijing Wandong Medical, you can compare the effects of market volatilities on Zotye Automobile and Beijing Wandong 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 Beijing Wandong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Beijing Wandong.
Diversification Opportunities for Zotye Automobile and Beijing Wandong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Beijing Wandong Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wandong 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 Beijing Wandong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wandong Medical has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Beijing Wandong go up and down completely randomly.
Pair Corralation between Zotye Automobile and Beijing Wandong
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Beijing Wandong. In addition to that, Zotye Automobile is 1.76 times more volatile than Beijing Wandong Medical. It trades about 0.0 of its total potential returns per unit of risk. Beijing Wandong Medical is currently generating about 0.0 per unit of volatility. If you would invest 1,954 in Beijing Wandong Medical on September 13, 2024 and sell it today you would lose (215.00) from holding Beijing Wandong Medical or give up 11.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Beijing Wandong Medical
Performance |
| Timeline |
| Zotye Automobile |
| Beijing Wandong Medical |
Zotye Automobile and Beijing Wandong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Beijing Wandong
The main advantage of trading using opposite Zotye Automobile and Beijing Wandong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Beijing Wandong 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 Beijing Wandong will offset losses from the drop in Beijing Wandong'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 |
| Beijing Wandong vs. Industrial and Commercial | Beijing Wandong vs. Kweichow Moutai Co | Beijing Wandong vs. Agricultural Bank of | Beijing Wandong 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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