Correlation Between Zotye Automobile and Sino Medical
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By analyzing existing cross correlation between Zotye Automobile Co and Sino Medical Sciences, you can compare the effects of market volatilities on Zotye Automobile and Sino Medical 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 Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Sino Medical.
Diversification Opportunities for Zotye Automobile and Sino Medical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Sino is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences 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 Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Sino Medical go up and down completely randomly.
Pair Corralation between Zotye Automobile and Sino Medical
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Sino Medical. In addition to that, Zotye Automobile is 1.07 times more volatile than Sino Medical Sciences. It trades about 0.0 of its total potential returns per unit of risk. Sino Medical Sciences is currently generating about 0.04 per unit of volatility. If you would invest 836.00 in Sino Medical Sciences on September 12, 2024 and sell it today you would earn a total of 285.00 from holding Sino Medical Sciences or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Sino Medical Sciences
Performance |
| Timeline |
| Zotye Automobile |
| Sino Medical Sciences |
Zotye Automobile and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Sino Medical
The main advantage of trading using opposite Zotye Automobile and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Sino Medical 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 Sino Medical will offset losses from the drop in Sino Medical's long position.| Zotye Automobile vs. Lutian Machinery Co | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Bank of China | Zotye Automobile vs. Gansu Jiu Steel |
| Sino Medical vs. Cultural Investment Holdings | Sino Medical vs. Gome Telecom Equipment | Sino Medical vs. Holitech Technology Co | Sino Medical vs. Zotye Automobile 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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