Correlation Between Guangdong Jinming and Zotye Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jinming Machinery and Zotye Automobile Co, you can compare the effects of market volatilities on Guangdong Jinming 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 Guangdong Jinming with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinming and Zotye Automobile.
Diversification Opportunities for Guangdong Jinming and Zotye Automobile
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Zotye is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinming Machinery and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Guangdong Jinming 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 Guangdong Jinming Machinery 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 Guangdong Jinming i.e., Guangdong Jinming and Zotye Automobile go up and down completely randomly.
Pair Corralation between Guangdong Jinming and Zotye Automobile
Assuming the 90 days trading horizon Guangdong Jinming is expected to generate 1.49 times less return on investment than Zotye Automobile. But when comparing it to its historical volatility, Guangdong Jinming Machinery is 1.05 times less risky than Zotye Automobile. It trades about 0.18 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 148.00 in Zotye Automobile Co on September 12, 2024 and sell it today you would earn a total of 141.00 from holding Zotye Automobile Co or generate 95.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinming Machinery vs. Zotye Automobile Co
Performance |
| Timeline |
| Guangdong Jinming |
| Zotye Automobile |
Guangdong Jinming and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinming and Zotye Automobile
The main advantage of trading using opposite Guangdong Jinming and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinming 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.| Guangdong Jinming vs. Agricultural Bank of | Guangdong Jinming vs. Industrial and Commercial | Guangdong Jinming vs. Bank of China | Guangdong Jinming vs. PetroChina Co Ltd |
| Zotye Automobile vs. Lutian Machinery Co | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Bank of China | Zotye Automobile vs. Gansu Jiu Steel |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |