Correlation Between Huafa Industrial and Zotye Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huafa Industrial Co and Zotye Automobile Co, you can compare the effects of market volatilities on Huafa Industrial and Zotye 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 Huafa Industrial with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Zotye Automobile.
Diversification Opportunities for Huafa Industrial and Zotye Automobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huafa and Zotye is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Zotye Automobile go up and down completely randomly.
Pair Corralation between Huafa Industrial and Zotye Automobile
Assuming the 90 days trading horizon Huafa Industrial Co is expected to generate 0.69 times more return on investment than Zotye Automobile. However, Huafa Industrial Co is 1.45 times less risky than Zotye Automobile. It trades about 0.0 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.01 per unit of risk. If you would invest 743.00 in Huafa Industrial Co on September 2, 2024 and sell it today you would lose (71.00) from holding Huafa Industrial Co or give up 9.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Zotye Automobile Co
Performance |
| Timeline |
| Huafa Industrial |
| Zotye Automobile |
Huafa Industrial and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Zotye Automobile
The main advantage of trading using opposite Huafa Industrial and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Zotye 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Huafa Industrial vs. Ningbo Fangzheng Automobile | Huafa Industrial vs. Anhui Jianghuai Automobile | Huafa Industrial vs. Jinhe Biotechnology Co | Huafa Industrial vs. Guangzhou KingTeller Technology |
| Zotye Automobile vs. Biwin Storage Technology | Zotye Automobile vs. PetroChina Co Ltd | Zotye Automobile vs. Industrial and Commercial | Zotye Automobile vs. China Construction Bank |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |