Correlation Between Zhongzhu Medical and Zoomlion Heavy
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Zhongzhu Medical and Zoomlion Heavy 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 Zhongzhu Medical with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Zoomlion Heavy.
Diversification Opportunities for Zhongzhu Medical and Zoomlion Heavy
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongzhu and Zoomlion is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Zhongzhu Medical 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 Zhongzhu Medical Holdings are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Zoomlion Heavy
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Zoomlion Heavy. In addition to that, Zhongzhu Medical is 1.04 times more volatile than Zoomlion Heavy Industry. It trades about -0.32 of its total potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.06 per unit of volatility. If you would invest 699.00 in Zoomlion Heavy Industry on October 17, 2024 and sell it today you would earn a total of 15.00 from holding Zoomlion Heavy Industry or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Zoomlion Heavy Industry |
Zhongzhu Medical and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Zoomlion Heavy
The main advantage of trading using opposite Zhongzhu Medical and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.| Zhongzhu Medical vs. Ningbo Jintian Copper | Zhongzhu Medical vs. Jinling Hotel Corp | Zhongzhu Medical vs. Sino Platinum Metals Co | Zhongzhu Medical vs. Ye Chiu Metal |
| Zoomlion Heavy vs. Eyebright Medical Technology | Zoomlion Heavy vs. Southchip Semiconductor Technology | Zoomlion Heavy vs. Ingenic Semiconductor | Zoomlion Heavy vs. Zhongzhu Medical Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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