Correlation Between Shenzhen Clou and Zoy Home
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Zoy Home Furnishing, you can compare the effects of market volatilities on Shenzhen Clou and Zoy Home 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 Shenzhen Clou with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Zoy Home.
Diversification Opportunities for Shenzhen Clou and Zoy Home
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Zoy is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and Shenzhen Clou 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 Shenzhen Clou Electronics are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Zoy Home go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Zoy Home
Assuming the 90 days trading horizon Shenzhen Clou is expected to generate 12.83 times less return on investment than Zoy Home. In addition to that, Shenzhen Clou is 1.05 times more volatile than Zoy Home Furnishing. It trades about 0.01 of its total potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.07 per unit of volatility. If you would invest 1,013 in Zoy Home Furnishing on November 2, 2024 and sell it today you would earn a total of 121.00 from holding Zoy Home Furnishing or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Zoy Home Furnishing
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Zoy Home Furnishing |
Shenzhen Clou and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Zoy Home
The main advantage of trading using opposite Shenzhen Clou and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Shenzhen Clou vs. Zoy Home Furnishing | Shenzhen Clou vs. Ningbo Homelink Eco iTech | Shenzhen Clou vs. Industrial Bank Co | Shenzhen Clou vs. Mengtian Home Group |
| Zoy Home vs. Harvest Fund Management | Zoy Home vs. Dazhong Transportation Group | Zoy Home vs. Shandong Hi Speed RoadBridge | Zoy Home vs. Cicc Fund Management |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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