Correlation Between Zoje Resources and Dongfeng Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zoje Resources Investment and Dongfeng Automobile Co, you can compare the effects of market volatilities on Zoje Resources and Dongfeng Automobile 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 Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Dongfeng Automobile.
Diversification Opportunities for Zoje Resources and Dongfeng Automobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoje and Dongfeng is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Zoje Resources i.e., Zoje Resources and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Zoje Resources and Dongfeng Automobile
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.17 times more return on investment than Dongfeng Automobile. However, Zoje Resources is 1.17 times more volatile than Dongfeng Automobile Co. It trades about 0.06 of its potential returns per unit of risk. Dongfeng Automobile Co is currently generating about 0.04 per unit of risk. If you would invest 222.00 in Zoje Resources Investment on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Zoje Resources Investment or generate 22.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Dongfeng Automobile Co
Performance |
| Timeline |
| Zoje Resources Investment |
| Dongfeng Automobile |
Zoje Resources and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Dongfeng Automobile
The main advantage of trading using opposite Zoje Resources and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Dongfeng Automobile 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Zoje Resources vs. New China Life | Zoje Resources vs. Ming Yang Smart | Zoje Resources vs. 159681 | Zoje Resources vs. 159005 |
| Dongfeng Automobile vs. China Life Insurance | Dongfeng Automobile vs. Cicc Fund Management | Dongfeng Automobile vs. Metro Investment Development | Dongfeng Automobile vs. Zhongrun Resources Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |