Correlation Between Zotye Automobile and Offshore Oil
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By analyzing existing cross correlation between Zotye Automobile Co and Offshore Oil Engineering, you can compare the effects of market volatilities on Zotye Automobile and Offshore Oil 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 Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Offshore Oil.
Diversification Opportunities for Zotye Automobile and Offshore Oil
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Offshore is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering 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 Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Offshore Oil go up and down completely randomly.
Pair Corralation between Zotye Automobile and Offshore Oil
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 3.63 times more return on investment than Offshore Oil. However, Zotye Automobile is 3.63 times more volatile than Offshore Oil Engineering. It trades about 0.16 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.03 per unit of risk. If you would invest 216.00 in Zotye Automobile Co on August 25, 2024 and sell it today you would earn a total of 41.00 from holding Zotye Automobile Co or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Offshore Oil Engineering
Performance |
| Timeline |
| Zotye Automobile |
| Offshore Oil Engineering |
Zotye Automobile and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Offshore Oil
The main advantage of trading using opposite Zotye Automobile and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.| Zotye Automobile vs. Success Electronics | Zotye Automobile vs. Xiandai Investment Co | Zotye Automobile vs. Servyou Software Group | Zotye Automobile vs. Kunwu Jiuding Investment |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Xiangyang Automobile Bearing | Offshore Oil vs. COL Digital Publishing | Offshore Oil vs. Suzhou Novoprotein Scientific |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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