Correlation Between China Asset and Zoje Resources
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Asset Management and Zoje Resources Investment, you can compare the effects of market volatilities on China Asset and Zoje Resources 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 China Asset with a short position of Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Zoje Resources.
Diversification Opportunities for China Asset and Zoje Resources
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Zoje is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment and China Asset 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 China Asset Management are associated (or correlated) with Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of China Asset i.e., China Asset and Zoje Resources go up and down completely randomly.
Pair Corralation between China Asset and Zoje Resources
Assuming the 90 days trading horizon China Asset is expected to generate 4.02 times less return on investment than Zoje Resources. But when comparing it to its historical volatility, China Asset Management is 4.22 times less risky than Zoje Resources. It trades about 0.12 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Zoje Resources Investment on September 14, 2024 and sell it today you would earn a total of 206.00 from holding Zoje Resources Investment or generate 170.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Zoje Resources Investment
Performance |
| Timeline |
| China Asset Management |
| Zoje Resources Investment |
China Asset and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Zoje Resources
The main advantage of trading using opposite China Asset and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Kweichow Moutai Co | Zoje Resources vs. Agricultural Bank of | Zoje Resources vs. China Mobile Limited |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |