Correlation Between Zhongzhu Medical and Dongfeng Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongzhu Medical Holdings and Dongfeng Automobile Co, you can compare the effects of market volatilities on Zhongzhu Medical and Dongfeng 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 Zhongzhu Medical with a short position of Dongfeng Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and Dongfeng Automobile.
Diversification Opportunities for Zhongzhu Medical and Dongfeng Automobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongzhu and Dongfeng is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings and Dongfeng Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongfeng Automobile 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 Dongfeng Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongfeng Automobile has no effect on the direction of Zhongzhu Medical i.e., Zhongzhu Medical and Dongfeng Automobile go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and Dongfeng Automobile
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the Dongfeng Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.44 times less risky than Dongfeng Automobile. The stock trades about -0.03 of its potential returns per unit of risk. The Dongfeng Automobile Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 591.00 in Dongfeng Automobile Co on October 14, 2024 and sell it today you would earn a total of 66.00 from holding Dongfeng Automobile Co or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. Dongfeng Automobile Co
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| Dongfeng Automobile |
Zhongzhu Medical and Dongfeng Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and Dongfeng Automobile
The main advantage of trading using opposite Zhongzhu Medical and Dongfeng Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical position performs unexpectedly, Dongfeng 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 Dongfeng Automobile will offset losses from the drop in Dongfeng Automobile's long position.| Zhongzhu Medical vs. Beijing HuaYuanYiTong Thermal | Zhongzhu Medical vs. Keda Clean Energy | Zhongzhu Medical vs. Kingclean Electric Co | Zhongzhu Medical vs. Shaanxi Meineng Clean |
| Dongfeng Automobile vs. Zhongzhu Medical Holdings | Dongfeng Automobile vs. Huizhou Speed Wireless | Dongfeng Automobile vs. Tinavi Medical Technologies | Dongfeng Automobile vs. Xiangyu Medical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |