Correlation Between Ziel Home and Dongfeng Automobile
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By analyzing existing cross correlation between Ziel Home Furnishing and Dongfeng Automobile Co, you can compare the effects of market volatilities on Ziel Home and Dongfeng 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 Ziel Home with a short position of Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Dongfeng Automobile.
Diversification Opportunities for Ziel Home and Dongfeng Automobile
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ziel and Dongfeng is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Ziel Home i.e., Ziel Home and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Ziel Home and Dongfeng Automobile
Assuming the 90 days trading horizon Ziel Home Furnishing is not expected to generate positive returns. Moreover, Ziel Home is 1.16 times more volatile than Dongfeng Automobile Co. It trades away all of its potential returns to assume current level of volatility. Dongfeng Automobile Co is currently generating about 0.02 per unit of risk. If you would invest 599.00 in Dongfeng Automobile Co on October 31, 2024 and sell it today you would earn a total of 66.00 from holding Dongfeng Automobile Co or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.7% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Dongfeng Automobile Co
Performance |
| Timeline |
| Ziel Home Furnishing |
| Dongfeng Automobile |
Ziel Home and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Dongfeng Automobile
The main advantage of trading using opposite Ziel Home and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, Dongfeng 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Ziel Home vs. Shenyang Blue Silver | Ziel Home vs. Guangdong Silvere Sci | Ziel Home vs. Jiangxi Naipu Mining | Ziel Home vs. Tibet Huayu Mining |
| Dongfeng Automobile vs. Cicc Fund Management | Dongfeng Automobile vs. Sublime China Information | Dongfeng Automobile vs. Bonree Data Technology | Dongfeng Automobile vs. Hygon Information Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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