Correlation Between Zoje Resources and Gem Year
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By analyzing existing cross correlation between Zoje Resources Investment and Gem Year Industrial Co, you can compare the effects of market volatilities on Zoje Resources and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Gem Year.
Diversification Opportunities for Zoje Resources and Gem Year
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoje and Gem is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Zoje Resources i.e., Zoje Resources and Gem Year go up and down completely randomly.
Pair Corralation between Zoje Resources and Gem Year
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.49 times more return on investment than Gem Year. However, Zoje Resources is 1.49 times more volatile than Gem Year Industrial Co. It trades about 0.07 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 145.00 in Zoje Resources Investment on August 25, 2024 and sell it today you would earn a total of 95.00 from holding Zoje Resources Investment or generate 65.52% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Zoje Resources Investment |
| Gem Year Industrial |
Zoje Resources and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Gem Year
The main advantage of trading using opposite Zoje Resources and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Zoje Resources vs. Epoxy Base Electronic | Zoje Resources vs. Semiconductor Manufacturing Electronics | Zoje Resources vs. Weihai Honglin Electronic | Zoje Resources vs. Aurora Optoelectronics Co |
| Gem Year vs. Tieling Newcity Investment | Gem Year vs. Hubei Geoway Investment | Gem Year vs. Xiandai Investment Co | Gem Year vs. Zoje 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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