Correlation Between Zotye Automobile and Shanghai Yanpu
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By analyzing existing cross correlation between Zotye Automobile Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Zotye Automobile and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Shanghai Yanpu.
Diversification Opportunities for Zotye Automobile and Shanghai Yanpu
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Shanghai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Zotye Automobile and Shanghai Yanpu
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Shanghai Yanpu. In addition to that, Zotye Automobile is 1.33 times more volatile than Shanghai Yanpu Metal. It trades about -0.03 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.01 per unit of volatility. If you would invest 3,853 in Shanghai Yanpu Metal on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Shanghai Yanpu Metal or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Zotye Automobile |
| Shanghai Yanpu Metal |
Zotye Automobile and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Shanghai Yanpu
The main advantage of trading using opposite Zotye Automobile and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Zotye Automobile vs. Caihong Display Devices | Zotye Automobile vs. Sinomach Automobile Co | Zotye Automobile vs. Lander Sports Development | Zotye Automobile vs. Songz Automobile Air |
| Shanghai Yanpu vs. Loongson Technology Corp | Shanghai Yanpu vs. Chongqing Road Bridge | Shanghai Yanpu vs. Shenzhen Fortune Trend | Shanghai Yanpu vs. Wuhan Xianglong Power |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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