Correlation Between Zotye Automobile and HMTNew Technical
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By analyzing existing cross correlation between Zotye Automobile Co and HMTNew Technical, you can compare the effects of market volatilities on Zotye Automobile and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and HMTNew Technical.
Diversification Opportunities for Zotye Automobile and HMTNew Technical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and HMTNew is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and HMTNew Technical go up and down completely randomly.
Pair Corralation between Zotye Automobile and HMTNew Technical
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 1.16 times less return on investment than HMTNew Technical. In addition to that, Zotye Automobile is 1.02 times more volatile than HMTNew Technical. It trades about 0.09 of its total potential returns per unit of risk. HMTNew Technical is currently generating about 0.11 per unit of volatility. If you would invest 2,959 in HMTNew Technical on September 5, 2024 and sell it today you would earn a total of 263.00 from holding HMTNew Technical or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. HMTNew Technical
Performance |
| Timeline |
| Zotye Automobile |
| HMTNew Technical |
Zotye Automobile and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and HMTNew Technical
The main advantage of trading using opposite Zotye Automobile and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Zotye Automobile vs. Harvest Fund Management | Zotye Automobile vs. Innovative Medical Management | Zotye Automobile vs. Huaxia Fund Management | Zotye Automobile vs. AVIC Fund Management |
| HMTNew Technical vs. Jointo Energy Investment | HMTNew Technical vs. Changchun UP Optotech | HMTNew Technical vs. Sinofibers Technology Co | HMTNew Technical vs. Nuode Investment 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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