Correlation Between Zotye Automobile and Suzhou Weizhixiang
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By analyzing existing cross correlation between Zotye Automobile Co and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Zotye Automobile and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Suzhou Weizhixiang.
Diversification Opportunities for Zotye Automobile and Suzhou Weizhixiang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Suzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Zotye Automobile and Suzhou Weizhixiang
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 2.81 times less return on investment than Suzhou Weizhixiang. In addition to that, Zotye Automobile is 1.49 times more volatile than Suzhou Weizhixiang Food. It trades about 0.07 of its total potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about 0.28 per unit of volatility. If you would invest 2,056 in Suzhou Weizhixiang Food on September 1, 2024 and sell it today you would earn a total of 444.00 from holding Suzhou Weizhixiang Food or generate 21.6% 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. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Zotye Automobile |
| Suzhou Weizhixiang Food |
Zotye Automobile and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Suzhou Weizhixiang
The main advantage of trading using opposite Zotye Automobile and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Zotye Automobile vs. Biwin Storage Technology | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Industrial and Commercial | Zotye Automobile vs. China Construction Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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