Correlation Between Gold Rain and Zinwell
Can any of the company-specific risk be diversified away by investing in both Gold Rain and Zinwell at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gold Rain and Zinwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Rain Enterprises and Zinwell, you can compare the effects of market volatilities on Gold Rain and Zinwell 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 Gold Rain with a short position of Zinwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Rain and Zinwell.
Diversification Opportunities for Gold Rain and Zinwell
Very good diversification
The 3 months correlation between Gold and Zinwell is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gold Rain Enterprises and Zinwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinwell and Gold Rain 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 Gold Rain Enterprises are associated (or correlated) with Zinwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinwell has no effect on the direction of Gold Rain i.e., Gold Rain and Zinwell go up and down completely randomly.
Pair Corralation between Gold Rain and Zinwell
Assuming the 90 days trading horizon Gold Rain Enterprises is expected to generate 1.61 times more return on investment than Zinwell. However, Gold Rain is 1.61 times more volatile than Zinwell. It trades about 0.01 of its potential returns per unit of risk. Zinwell is currently generating about -0.25 per unit of risk. If you would invest 5,360 in Gold Rain Enterprises on October 16, 2024 and sell it today you would lose (30.00) from holding Gold Rain Enterprises or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Rain Enterprises vs. Zinwell
Performance |
| Timeline |
| Gold Rain Enterprises |
| Zinwell |
Gold Rain and Zinwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Rain and Zinwell
The main advantage of trading using opposite Gold Rain and Zinwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Rain position performs unexpectedly, Zinwell 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 Zinwell will offset losses from the drop in Zinwell's long position.| Gold Rain vs. AVerMedia Technologies | Gold Rain vs. Min Aik Technology | Gold Rain vs. Uniform Industrial Corp | Gold Rain vs. Information Technology Total |
| Zinwell vs. Clevo Co | Zinwell vs. D Link Corp | Zinwell vs. Cheng Uei Precision | Zinwell vs. Senao International Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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