Correlation Between Zoje Resources and Sany Heavy
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By analyzing existing cross correlation between Zoje Resources Investment and Sany Heavy Industry, you can compare the effects of market volatilities on Zoje Resources and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Sany Heavy.
Diversification Opportunities for Zoje Resources and Sany Heavy
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoje and Sany is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Zoje Resources i.e., Zoje Resources and Sany Heavy go up and down completely randomly.
Pair Corralation between Zoje Resources and Sany Heavy
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.93 times more return on investment than Sany Heavy. However, Zoje Resources is 1.93 times more volatile than Sany Heavy Industry. It trades about 0.08 of its potential returns per unit of risk. Sany Heavy Industry is currently generating about 0.02 per unit of risk. If you would invest 112.00 in Zoje Resources Investment on September 13, 2024 and sell it today you would earn a total of 229.00 from holding Zoje Resources Investment or generate 204.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Sany Heavy Industry
Performance |
| Timeline |
| Zoje Resources Investment |
| Sany Heavy Industry |
Zoje Resources and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Sany Heavy
The main advantage of trading using opposite Zoje Resources and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy'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 |
| Sany Heavy vs. Beijing Sanyuan Foods | Sany Heavy vs. Jiangxi JDL Environmental | Sany Heavy vs. Sinocat Environmental Technology | Sany Heavy vs. Bengang Steel Plates |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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