Correlation Between Zotye Automobile and HOB Biotech
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By analyzing existing cross correlation between Zotye Automobile Co and HOB Biotech Group, you can compare the effects of market volatilities on Zotye Automobile and HOB Biotech 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 HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and HOB Biotech.
Diversification Opportunities for Zotye Automobile and HOB Biotech
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and HOB is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group 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 HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and HOB Biotech go up and down completely randomly.
Pair Corralation between Zotye Automobile and HOB Biotech
Assuming the 90 days trading horizon Zotye Automobile is expected to generate 2.1 times less return on investment than HOB Biotech. But when comparing it to its historical volatility, Zotye Automobile Co is 1.59 times less risky than HOB Biotech. It trades about 0.28 of its potential returns per unit of risk. HOB Biotech Group is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2,358 in HOB Biotech Group on September 12, 2024 and sell it today you would earn a total of 8,642 from holding HOB Biotech Group or generate 366.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Zotye Automobile Co vs. HOB Biotech Group
Performance |
| Timeline |
| Zotye Automobile |
| HOB Biotech Group |
Zotye Automobile and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and HOB Biotech
The main advantage of trading using opposite Zotye Automobile and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.| Zotye Automobile vs. Cambricon Technologies Corp | Zotye Automobile vs. Loongson Technology Corp | Zotye Automobile vs. Shenzhen Fortune Trend | Zotye Automobile vs. Chongqing Road Bridge |
| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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