Correlation Between Longxing Chemical and Zoy Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longxing Chemical Stock and Zoy Home Furnishing, you can compare the effects of market volatilities on Longxing Chemical 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 Longxing Chemical with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longxing Chemical and Zoy Home.
Diversification Opportunities for Longxing Chemical and Zoy Home
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longxing and Zoy is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Longxing Chemical Stock 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 Longxing Chemical 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 Longxing Chemical Stock 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 Longxing Chemical i.e., Longxing Chemical and Zoy Home go up and down completely randomly.
Pair Corralation between Longxing Chemical and Zoy Home
Assuming the 90 days trading horizon Longxing Chemical Stock is expected to generate 1.26 times more return on investment than Zoy Home. However, Longxing Chemical is 1.26 times more volatile than Zoy Home Furnishing. It trades about 0.09 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.06 per unit of risk. If you would invest 537.00 in Longxing Chemical Stock on October 23, 2024 and sell it today you would earn a total of 35.00 from holding Longxing Chemical Stock or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Longxing Chemical Stock vs. Zoy Home Furnishing
Performance |
| Timeline |
| Longxing Chemical Stock |
| Zoy Home Furnishing |
Longxing Chemical and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longxing Chemical and Zoy Home
The main advantage of trading using opposite Longxing Chemical and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longxing Chemical 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.| Longxing Chemical vs. Pengxin International Mining | Longxing Chemical vs. Chengtun Mining Group | Longxing Chemical vs. Sharetronic Data Technology | Longxing Chemical vs. Emdoor Information Co |
| Zoy Home vs. BeiGene | Zoy Home vs. Kweichow Moutai Co | Zoy Home vs. Beijing Roborock Technology | Zoy Home vs. G bits Network Technology |
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.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |