Correlation Between Zotye Automobile and Oppein Home
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By analyzing existing cross correlation between Zotye Automobile Co and Oppein Home Group, you can compare the effects of market volatilities on Zotye Automobile and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Oppein Home.
Diversification Opportunities for Zotye Automobile and Oppein Home
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Oppein is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Oppein Home go up and down completely randomly.
Pair Corralation between Zotye Automobile and Oppein Home
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 1.62 times more return on investment than Oppein Home. However, Zotye Automobile is 1.62 times more volatile than Oppein Home Group. It trades about 0.26 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.09 per unit of risk. If you would invest 200.00 in Zotye Automobile Co on August 23, 2024 and sell it today you would earn a total of 70.00 from holding Zotye Automobile Co or generate 35.0% 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. Oppein Home Group
Performance |
| Timeline |
| Zotye Automobile |
| Oppein Home Group |
Zotye Automobile and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Oppein Home
The main advantage of trading using opposite Zotye Automobile and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Zotye Automobile vs. China Mobile Limited | Zotye Automobile vs. Gansu Jiu Steel | Zotye Automobile vs. Shandong Mining Machinery | Zotye Automobile vs. Aba Chemicals Corp |
| Oppein Home vs. Zhejiang Construction Investment | Oppein Home vs. Zhongrun Resources Investment | Oppein Home vs. Zotye Automobile Co | Oppein Home vs. Wuhan Yangtze Communication |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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