Correlation Between Zotye Automobile and Cultural Investment
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By analyzing existing cross correlation between Zotye Automobile Co and Cultural Investment Holdings, you can compare the effects of market volatilities on Zotye Automobile and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Cultural Investment.
Diversification Opportunities for Zotye Automobile and Cultural Investment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Cultural is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Cultural Investment go up and down completely randomly.
Pair Corralation between Zotye Automobile and Cultural Investment
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Cultural Investment. In addition to that, Zotye Automobile is 1.03 times more volatile than Cultural Investment Holdings. It trades about -0.02 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.01 per unit of volatility. If you would invest 237.00 in Cultural Investment Holdings on November 2, 2024 and sell it today you would lose (28.00) from holding Cultural Investment Holdings or give up 11.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zotye Automobile Co vs. Cultural Investment Holdings
Performance |
Timeline |
Zotye Automobile |
Cultural Investment |
Zotye Automobile and Cultural Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zotye Automobile and Cultural Investment
The main advantage of trading using opposite Zotye Automobile and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.Zotye Automobile vs. China Asset Management | Zotye Automobile vs. Jiangsu Yanghe Brewery | Zotye Automobile vs. Linkage Software Co | Zotye Automobile vs. Gansu Huangtai Wine marketing |
Cultural Investment vs. Suzhou Weizhixiang Food | Cultural Investment vs. Guizhou Chanhen Chemical | Cultural Investment vs. Gan Yuan Foods | Cultural Investment vs. Bsm Chemical Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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