Correlation Between Zotye Automobile and Bank of XiAn
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By analyzing existing cross correlation between Zotye Automobile Co and Bank of XiAn, you can compare the effects of market volatilities on Zotye Automobile and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Bank of XiAn.
Diversification Opportunities for Zotye Automobile and Bank of XiAn
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Bank is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Bank of XiAn go up and down completely randomly.
Pair Corralation between Zotye Automobile and Bank of XiAn
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Bank of XiAn. In addition to that, Zotye Automobile is 2.27 times more volatile than Bank of XiAn. It trades about 0.0 of its total potential returns per unit of risk. Bank of XiAn is currently generating about 0.03 per unit of volatility. If you would invest 321.00 in Bank of XiAn on September 14, 2024 and sell it today you would earn a total of 66.00 from holding Bank of XiAn or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Zotye Automobile Co vs. Bank of XiAn
Performance |
| Timeline |
| Zotye Automobile |
| Bank of XiAn |
Zotye Automobile and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Bank of XiAn
The main advantage of trading using opposite Zotye Automobile and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn'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 |
| Bank of XiAn vs. Cultural Investment Holdings | Bank of XiAn vs. Gome Telecom Equipment | Bank of XiAn vs. Holitech Technology Co | Bank of XiAn vs. Zotye Automobile 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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