Correlation Between GRG Banking and Zoy Home
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By analyzing existing cross correlation between GRG Banking Equipment and Zoy Home Furnishing, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Zoy Home.
Diversification Opportunities for GRG Banking and Zoy Home
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Zoy is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment 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 GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Zoy Home go up and down completely randomly.
Pair Corralation between GRG Banking and Zoy Home
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Zoy Home. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 1.84 times less risky than Zoy Home. The stock trades about -0.24 of its potential returns per unit of risk. The Zoy Home Furnishing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Zoy Home Furnishing on October 25, 2024 and sell it today you would earn a total of 56.00 from holding Zoy Home Furnishing or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Zoy Home Furnishing
Performance |
| Timeline |
| GRG Banking Equipment |
| Zoy Home Furnishing |
GRG Banking and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Zoy Home
The main advantage of trading using opposite GRG Banking and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Kweichow Moutai Co | GRG Banking vs. NAURA Technology Group | GRG Banking vs. APT Medical | GRG Banking vs. BYD Co Ltd |
| Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Gansu Jiu Steel | Zoy Home vs. Ming Yang Smart | Zoy Home vs. Aba Chemicals Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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