Correlation Between Zoje Resources and China Fortune
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By analyzing existing cross correlation between Zoje Resources Investment and China Fortune Land, you can compare the effects of market volatilities on Zoje Resources and China Fortune 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 Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and China Fortune.
Diversification Opportunities for Zoje Resources and China Fortune
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoje and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and China Fortune Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Fortune Land 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 Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Fortune Land has no effect on the direction of Zoje Resources i.e., Zoje Resources and China Fortune go up and down completely randomly.
Pair Corralation between Zoje Resources and China Fortune
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 0.99 times more return on investment than China Fortune. However, Zoje Resources Investment is 1.01 times less risky than China Fortune. It trades about 0.09 of its potential returns per unit of risk. China Fortune Land is currently generating about 0.03 per unit of risk. If you would invest 102.00 in Zoje Resources Investment on August 31, 2024 and sell it today you would earn a total of 169.00 from holding Zoje Resources Investment or generate 165.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. China Fortune Land
Performance |
| Timeline |
| Zoje Resources Investment |
| China Fortune Land |
Zoje Resources and China Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and China Fortune
The main advantage of trading using opposite Zoje Resources and China Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, China Fortune 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 Fortune will offset losses from the drop in China Fortune's long position.| Zoje Resources vs. Cultural Investment Holdings | Zoje Resources vs. Gome Telecom Equipment | Zoje Resources vs. Bus Online Co | Zoje Resources vs. Holitech Technology Co |
| China Fortune vs. Kweichow Moutai Co | China Fortune vs. Contemporary Amperex Technology | China Fortune vs. G bits Network Technology | China Fortune vs. BYD Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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