Correlation Between Anhui Huilong and Zotye Automobile
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Zotye Automobile Co, you can compare the effects of market volatilities on Anhui Huilong and Zotye Automobile 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 Anhui Huilong with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Zotye Automobile.
Diversification Opportunities for Anhui Huilong and Zotye Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Zotye is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Anhui Huilong 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 Anhui Huilong Agricultural are associated (or correlated) with Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Zotye Automobile go up and down completely randomly.
Pair Corralation between Anhui Huilong and Zotye Automobile
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 0.58 times more return on investment than Zotye Automobile. However, Anhui Huilong Agricultural is 1.71 times less risky than Zotye Automobile. It trades about -0.01 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.02 per unit of risk. If you would invest 842.00 in Anhui Huilong Agricultural on September 4, 2024 and sell it today you would lose (193.00) from holding Anhui Huilong Agricultural or give up 22.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Zotye Automobile Co
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Zotye Automobile |
Anhui Huilong and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Zotye Automobile
The main advantage of trading using opposite Anhui Huilong and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Rongsheng Petrochemical Co |
| Zotye Automobile vs. Industrial and Commercial | Zotye Automobile vs. China Construction Bank | Zotye Automobile vs. Agricultural Bank of | Zotye Automobile vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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