Correlation Between Zotye Automobile and Postal Savings
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By analyzing existing cross correlation between Zotye Automobile Co and Postal Savings Bank, you can compare the effects of market volatilities on Zotye Automobile and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Postal Savings.
Diversification Opportunities for Zotye Automobile and Postal Savings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zotye and Postal is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Postal Savings go up and down completely randomly.
Pair Corralation between Zotye Automobile and Postal Savings
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Postal Savings. In addition to that, Zotye Automobile is 2.98 times more volatile than Postal Savings Bank. It trades about -0.19 of its total potential returns per unit of risk. Postal Savings Bank is currently generating about 0.04 per unit of volatility. If you would invest 537.00 in Postal Savings Bank on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Postal Savings Bank or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Postal Savings Bank
Performance |
| Timeline |
| Zotye Automobile |
| Postal Savings Bank |
Zotye Automobile and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Postal Savings
The main advantage of trading using opposite Zotye Automobile and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Zotye Automobile vs. Wuxi Double Elephant | Zotye Automobile vs. CICT Mobile Communication | Zotye Automobile vs. Allwin Telecommunication Co | Zotye Automobile vs. Xinjiang Qingsong Building |
| Postal Savings vs. Chengtun Mining Group | Postal Savings vs. Malion New Materials | Postal Savings vs. Guocheng Mining Co | Postal Savings vs. Shanghai Yanpu Metal |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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