Correlation Between Zotye Automobile and Changzhou Xingyu
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By analyzing existing cross correlation between Zotye Automobile Co and Changzhou Xingyu Automotive, you can compare the effects of market volatilities on Zotye Automobile and Changzhou Xingyu 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 Changzhou Xingyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Changzhou Xingyu.
Diversification Opportunities for Zotye Automobile and Changzhou Xingyu
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zotye and Changzhou is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Changzhou Xingyu Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Xingyu Aut 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 Changzhou Xingyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Xingyu Aut has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Changzhou Xingyu go up and down completely randomly.
Pair Corralation between Zotye Automobile and Changzhou Xingyu
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 2.48 times more return on investment than Changzhou Xingyu. However, Zotye Automobile is 2.48 times more volatile than Changzhou Xingyu Automotive. It trades about 0.03 of its potential returns per unit of risk. Changzhou Xingyu Automotive is currently generating about -0.07 per unit of risk. If you would invest 216.00 in Zotye Automobile Co on October 24, 2024 and sell it today you would earn a total of 4.00 from holding Zotye Automobile Co or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Changzhou Xingyu Automotive
Performance |
| Timeline |
| Zotye Automobile |
| Changzhou Xingyu Aut |
Zotye Automobile and Changzhou Xingyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Changzhou Xingyu
The main advantage of trading using opposite Zotye Automobile and Changzhou Xingyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Changzhou Xingyu 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 Changzhou Xingyu will offset losses from the drop in Changzhou Xingyu's long position.| Zotye Automobile vs. Shenzhen Silver Basis | Zotye Automobile vs. Quectel Wireless Solutions | Zotye Automobile vs. China Eastern Airlines | Zotye Automobile vs. Xiangyang Automobile Bearing |
| Changzhou Xingyu vs. Zotye Automobile Co | Changzhou Xingyu vs. Jiangsu Xinri E Vehicle | Changzhou Xingyu vs. Aluminum Corp of | Changzhou Xingyu vs. Western Metal Materials |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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