Correlation Between Xizi Clean and Zoje Resources
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By analyzing existing cross correlation between Xizi Clean Energy and Zoje Resources Investment, you can compare the effects of market volatilities on Xizi Clean and Zoje Resources 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 Xizi Clean with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Zoje Resources.
Diversification Opportunities for Xizi Clean and Zoje Resources
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Zoje is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and Xizi Clean 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 Xizi Clean Energy are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Xizi Clean i.e., Xizi Clean and Zoje Resources go up and down completely randomly.
Pair Corralation between Xizi Clean and Zoje Resources
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Xizi Clean Energy is 1.48 times less risky than Zoje Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Zoje Resources Investment on September 14, 2024 and sell it today you would earn a total of 206.00 from holding Zoje Resources Investment or generate 170.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Zoje Resources Investment
Performance |
| Timeline |
| Xizi Clean Energy |
| Zoje Resources Investment |
Xizi Clean and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Zoje Resources
The main advantage of trading using opposite Xizi Clean and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
| Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Kweichow Moutai Co | Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. China Mobile Limited |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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