Correlation Between Zotye Automobile and Changchun BCHT
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By analyzing existing cross correlation between Zotye Automobile Co and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Zotye Automobile and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Changchun BCHT.
Diversification Opportunities for Zotye Automobile and Changchun BCHT
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zotye and Changchun is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Changchun BCHT go up and down completely randomly.
Pair Corralation between Zotye Automobile and Changchun BCHT
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Changchun BCHT. In addition to that, Zotye Automobile is 2.06 times more volatile than Changchun BCHT Biotechnology. It trades about -0.24 of its total potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.28 per unit of volatility. If you would invest 2,580 in Changchun BCHT Biotechnology on October 22, 2024 and sell it today you would lose (270.00) from holding Changchun BCHT Biotechnology or give up 10.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Zotye Automobile Co vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Zotye Automobile |
| Changchun BCHT Biote |
Zotye Automobile and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Changchun BCHT
The main advantage of trading using opposite Zotye Automobile and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Zotye Automobile vs. Henan Shuanghui Investment | Zotye Automobile vs. Tieling Newcity Investment | Zotye Automobile vs. China Everbright Bank | Zotye Automobile vs. Luyin Investment Group |
| Changchun BCHT vs. Lotus Health Group | Changchun BCHT vs. Anhui Deli Household | Changchun BCHT vs. Bank of Communications | Changchun BCHT vs. Anhui Huaren Health |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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