Correlation Between Ziel Home and China Asset
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By analyzing existing cross correlation between Ziel Home Furnishing and China Asset Management, you can compare the effects of market volatilities on Ziel Home and China Asset 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 Ziel Home with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and China Asset.
Diversification Opportunities for Ziel Home and China Asset
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ziel and China is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and Ziel Home 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 Ziel Home Furnishing are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Ziel Home i.e., Ziel Home and China Asset go up and down completely randomly.
Pair Corralation between Ziel Home and China Asset
Assuming the 90 days trading horizon Ziel Home is expected to generate 2.11 times less return on investment than China Asset. In addition to that, Ziel Home is 1.12 times more volatile than China Asset Management. It trades about 0.16 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.38 per unit of volatility. If you would invest 365.00 in China Asset Management on November 8, 2024 and sell it today you would earn a total of 39.00 from holding China Asset Management or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. China Asset Management
Performance |
| Timeline |
| Ziel Home Furnishing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Asset Management |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Ziel Home and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and China Asset
The main advantage of trading using opposite Ziel Home and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.The idea behind Ziel Home Furnishing and China Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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