Correlation Between Zhengzhou Qianweiyangchu and Zoy Home
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By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Zoy Home Furnishing, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu and Zoy Home 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 Zhengzhou Qianweiyangchu with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Zoy Home.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Zoy Home
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhengzhou and Zoy is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Zoy Home go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Zoy Home
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu is expected to generate 1.58 times less return on investment than Zoy Home. In addition to that, Zhengzhou Qianweiyangchu is 1.22 times more volatile than Zoy Home Furnishing. It trades about 0.05 of its total potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.1 per unit of volatility. If you would invest 866.00 in Zoy Home Furnishing on November 2, 2024 and sell it today you would earn a total of 268.00 from holding Zoy Home Furnishing or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Zoy Home Furnishing
Performance |
| Timeline |
| Zhengzhou Qianweiyangchu |
| Zoy Home Furnishing |
Zhengzhou Qianweiyangchu and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Zoy Home
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Zhengzhou Qianweiyangchu vs. Jilin OLED Material | Zhengzhou Qianweiyangchu vs. Suzhou Weizhixiang Food | Zhengzhou Qianweiyangchu vs. China Building Material | Zhengzhou Qianweiyangchu vs. Nanya New Material |
| Zoy Home vs. Harvest Fund Management | Zoy Home vs. Dazhong Transportation Group | Zoy Home vs. Shandong Hi Speed RoadBridge | Zoy Home vs. Cicc Fund Management |
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 CEOs Directory module to screen CEOs from public companies around the world.
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