Correlation Between Zoje Resources and Nanhua Bio
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By analyzing existing cross correlation between Zoje Resources Investment and Nanhua Bio Medicine, you can compare the effects of market volatilities on Zoje Resources and Nanhua Bio 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 Zoje Resources with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Nanhua Bio.
Diversification Opportunities for Zoje Resources and Nanhua Bio
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zoje and Nanhua is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Zoje Resources 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 Zoje Resources Investment are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Zoje Resources i.e., Zoje Resources and Nanhua Bio go up and down completely randomly.
Pair Corralation between Zoje Resources and Nanhua Bio
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.43 times more return on investment than Nanhua Bio. However, Zoje Resources is 1.43 times more volatile than Nanhua Bio Medicine. It trades about 0.1 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about -0.02 per unit of risk. If you would invest 199.00 in Zoje Resources Investment on October 24, 2024 and sell it today you would earn a total of 50.00 from holding Zoje Resources Investment or generate 25.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Zoje Resources Investment vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Zoje Resources Investment |
| Nanhua Bio Medicine |
Zoje Resources and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Nanhua Bio
The main advantage of trading using opposite Zoje Resources and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Zoje Resources vs. Lotus Health Group | Zoje Resources vs. Sanbo Hospital Management | Zoje Resources vs. GuoChuang Software Co | Zoje Resources vs. Healthcare Co |
| Nanhua Bio vs. Allgens Medical Technology | Nanhua Bio vs. Allmed Medical Products | Nanhua Bio vs. Jilin Jlu Communication | Nanhua Bio vs. Winner Medical 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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