Correlation Between Sinomach Automobile and Zotye Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Zotye Automobile Co, you can compare the effects of market volatilities on Sinomach Automobile 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 Sinomach Automobile with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Zotye Automobile.
Diversification Opportunities for Sinomach Automobile and Zotye Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Zotye is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile 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 Sinomach Automobile i.e., Sinomach Automobile and Zotye Automobile go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Zotye Automobile
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Zotye Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.4 times less risky than Zotye Automobile. The stock trades about -0.03 of its potential returns per unit of risk. The Zotye Automobile Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Zotye Automobile Co on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Zotye Automobile Co or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Zotye Automobile Co
Performance |
| Timeline |
| Sinomach Automobile |
| Zotye Automobile |
Sinomach Automobile and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Zotye Automobile
The main advantage of trading using opposite Sinomach Automobile and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile 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.| Sinomach Automobile vs. Ming Yang Smart | Sinomach Automobile vs. 159681 | Sinomach Automobile vs. 159005 | Sinomach Automobile vs. Loctek Ergonomic 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |