Correlation Between Zoje Resources and Sinomach Automobile
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By analyzing existing cross correlation between Zoje Resources Investment and Sinomach Automobile Co, you can compare the effects of market volatilities on Zoje Resources and Sinomach 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Sinomach Automobile.
Diversification Opportunities for Zoje Resources and Sinomach Automobile
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoje and Sinomach is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Zoje Resources i.e., Zoje Resources and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Zoje Resources and Sinomach Automobile
Assuming the 90 days trading horizon Zoje Resources Investment is expected to under-perform the Sinomach Automobile. In addition to that, Zoje Resources is 1.61 times more volatile than Sinomach Automobile Co. It trades about -0.07 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.24 per unit of volatility. If you would invest 593.00 in Sinomach Automobile Co on November 7, 2024 and sell it today you would earn a total of 45.00 from holding Sinomach Automobile Co or generate 7.59% 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. Sinomach Automobile Co
Performance |
| Timeline |
| Zoje Resources Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sinomach Automobile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zoje Resources and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Sinomach Automobile
The main advantage of trading using opposite Zoje Resources and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Sinomach 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.The idea behind Zoje Resources Investment and Sinomach Automobile Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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