Correlation Between Zoje Resources and Xizi Clean
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By analyzing existing cross correlation between Zoje Resources Investment and Xizi Clean Energy, you can compare the effects of market volatilities on Zoje Resources and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Xizi Clean.
Diversification Opportunities for Zoje Resources and Xizi Clean
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Xizi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Zoje Resources i.e., Zoje Resources and Xizi Clean go up and down completely randomly.
Pair Corralation between Zoje Resources and Xizi Clean
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.48 times more return on investment than Xizi Clean. However, Zoje Resources is 1.48 times more volatile than Xizi Clean Energy. It trades about 0.11 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.0 per unit of risk. If you would invest 121.00 in Zoje Resources Investment on September 14, 2024 and sell it today you would earn a total of 206.00 from holding Zoje Resources Investment or generate 170.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Xizi Clean Energy
Performance |
| Timeline |
| Zoje Resources Investment |
| Xizi Clean Energy |
Zoje Resources and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Xizi Clean
The main advantage of trading using opposite Zoje Resources and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Kweichow Moutai Co | Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. China Mobile Limited |
| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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