Correlation Between Guangdong TianYiMa and Zoomlion Heavy
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By analyzing existing cross correlation between Guangdong TianYiMa Information and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Guangdong TianYiMa and Zoomlion Heavy 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 TianYiMa with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong TianYiMa and Zoomlion Heavy.
Diversification Opportunities for Guangdong TianYiMa and Zoomlion Heavy
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Zoomlion is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong TianYiMa Information and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Guangdong TianYiMa 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 TianYiMa Information are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Guangdong TianYiMa i.e., Guangdong TianYiMa and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Guangdong TianYiMa and Zoomlion Heavy
Assuming the 90 days trading horizon Guangdong TianYiMa Information is expected to under-perform the Zoomlion Heavy. In addition to that, Guangdong TianYiMa is 2.48 times more volatile than Zoomlion Heavy Industry. It trades about 0.0 of its total potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.03 per unit of volatility. If you would invest 698.00 in Zoomlion Heavy Industry on October 17, 2024 and sell it today you would earn a total of 10.00 from holding Zoomlion Heavy Industry or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong TianYiMa Information vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| Guangdong TianYiMa |
| Zoomlion Heavy Industry |
Guangdong TianYiMa and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong TianYiMa and Zoomlion Heavy
The main advantage of trading using opposite Guangdong TianYiMa and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong TianYiMa position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.| Guangdong TianYiMa vs. Guangdong Xiongsu Technology | Guangdong TianYiMa vs. Linewell Software Co | Guangdong TianYiMa vs. Sihui Fuji Electronics | Guangdong TianYiMa vs. Tianjin Ruixin Technology |
| Zoomlion Heavy vs. Guangdong TianYiMa Information | Zoomlion Heavy vs. Hangzhou Arcvideo Technology | Zoomlion Heavy vs. Zhengzhou Coal Mining | Zoomlion Heavy vs. Chenzhou Jingui Silver |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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