Correlation Between Zoje Resources and China Asset
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By analyzing existing cross correlation between Zoje Resources Investment and China Asset Management, you can compare the effects of market volatilities on Zoje Resources and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and China Asset.
Diversification Opportunities for Zoje Resources and China Asset
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zoje and China is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Zoje Resources i.e., Zoje Resources and China Asset go up and down completely randomly.
Pair Corralation between Zoje Resources and China Asset
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 4.22 times more return on investment than China Asset. However, Zoje Resources is 4.22 times more volatile than China Asset Management. It trades about 0.11 of its potential returns per unit of risk. China Asset Management is currently generating about 0.12 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. China Asset Management
Performance |
| Timeline |
| Zoje Resources Investment |
| China Asset Management |
Zoje Resources and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and China Asset
The main advantage of trading using opposite Zoje Resources and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset'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 |
| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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