Correlation Between Zotye Automobile and Chison Medical
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By analyzing existing cross correlation between Zotye Automobile Co and Chison Medical Technologies, you can compare the effects of market volatilities on Zotye Automobile and Chison 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Chison Medical.
Diversification Opportunities for Zotye Automobile and Chison Medical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and Chison is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Chison Medical go up and down completely randomly.
Pair Corralation between Zotye Automobile and Chison Medical
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 1.22 times more return on investment than Chison Medical. However, Zotye Automobile is 1.22 times more volatile than Chison Medical Technologies. It trades about 0.0 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about -0.01 per unit of risk. If you would invest 389.00 in Zotye Automobile Co on September 12, 2024 and sell it today you would lose (100.00) from holding Zotye Automobile Co or give up 25.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Chison Medical Technologies
Performance |
| Timeline |
| Zotye Automobile |
| Chison Medical Techn |
Zotye Automobile and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Chison Medical
The main advantage of trading using opposite Zotye Automobile and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Chison 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 Chison Medical will offset losses from the drop in Chison 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 |
| Chison Medical vs. Cultural Investment Holdings | Chison Medical vs. Gome Telecom Equipment | Chison Medical vs. Holitech Technology Co | Chison 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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