Correlation Between Changchun Engley and Zotye Automobile
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By analyzing existing cross correlation between Changchun Engley Automobile and Zotye Automobile Co, you can compare the effects of market volatilities on Changchun Engley 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 Changchun Engley with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Zotye Automobile.
Diversification Opportunities for Changchun Engley and Zotye Automobile
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Zotye is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Changchun Engley 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 Changchun Engley Automobile 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 Changchun Engley i.e., Changchun Engley and Zotye Automobile go up and down completely randomly.
Pair Corralation between Changchun Engley and Zotye Automobile
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to generate 0.69 times more return on investment than Zotye Automobile. However, Changchun Engley Automobile is 1.45 times less risky than Zotye Automobile. It trades about -0.02 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.02 per unit of risk. If you would invest 544.00 in Changchun Engley Automobile on October 16, 2024 and sell it today you would lose (200.00) from holding Changchun Engley Automobile or give up 36.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Zotye Automobile Co
Performance |
| Timeline |
| Changchun Engley Aut |
| Zotye Automobile |
Changchun Engley and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Zotye Automobile
The main advantage of trading using opposite Changchun Engley and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley 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.| Changchun Engley vs. Shanghai Ziyan Foods | Changchun Engley vs. Cangzhou Mingzhu Plastic | Changchun Engley vs. JuneYao Dairy Co | Changchun Engley vs. Jiangnan Mould Plastic |
| Zotye Automobile vs. Shuhua Sports Co | Zotye Automobile vs. Changchun Engley Automobile | Zotye Automobile vs. Aba Chemicals Corp | Zotye Automobile vs. Hainan Haiqi Transportation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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