Correlation Between Zotye Automobile and Gem Year
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By analyzing existing cross correlation between Zotye Automobile Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Zotye Automobile and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Gem Year.
Diversification Opportunities for Zotye Automobile and Gem Year
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Gem is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Gem Year go up and down completely randomly.
Pair Corralation between Zotye Automobile and Gem Year
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Gem Year. In addition to that, Zotye Automobile is 1.99 times more volatile than Gem Year Industrial Co. It trades about -0.07 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.34 per unit of volatility. If you would invest 408.00 in Gem Year Industrial Co on November 6, 2024 and sell it today you would earn a total of 41.00 from holding Gem Year Industrial Co or generate 10.05% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Zotye Automobile |
| Gem Year Industrial |
Zotye Automobile and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Gem Year
The main advantage of trading using opposite Zotye Automobile and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Zotye Automobile vs. Universal Scientific Industrial | Zotye Automobile vs. Zhongshan Public Utilities | Zotye Automobile vs. Chengtun Mining Group | Zotye Automobile vs. Sichuan Yahua Industrial |
| Gem Year vs. Time Publishing and | Gem Year vs. Northern United Publishing | Gem Year vs. Guangzhou Jointas Chemical | Gem Year vs. Shenzhen Noposion Agrochemicals |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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