Correlation Between Industrial and Zoy Home

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Industrial and Zoy Home at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Industrial and Zoy Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial and Commercial and Zoy Home Furnishing, you can compare the effects of market volatilities on Industrial and Zoy Home 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 Industrial with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Zoy Home.

Diversification Opportunities for Industrial and Zoy Home

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Industrial and Zoy is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and 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 Industrial and Commercial are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Industrial i.e., Industrial and Zoy Home go up and down completely randomly.

Pair Corralation between Industrial and Zoy Home

Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.73 times more return on investment than Zoy Home. However, Industrial and Commercial is 1.37 times less risky than Zoy Home. It trades about 0.06 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about -0.02 per unit of risk. If you would invest  682.00  in Industrial and Commercial on November 27, 2024 and sell it today you would earn a total of  7.00  from holding Industrial and Commercial or generate 1.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Industrial and Commercial  vs.  Zoy Home Furnishing

 Performance 
       Timeline  
Industrial and Commercial 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Industrial and Commercial are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Industrial may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Zoy Home Furnishing 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Zoy Home Furnishing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Zoy Home is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Industrial and Zoy Home Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Industrial and Zoy Home

The main advantage of trading using opposite Industrial and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.
Industrial vs. Zhengzhou Coal Mining
Industrial vs. Tibet Huayu Mining
Industrial vs. Dhc Software Co
Industrial vs. Linewell Software Co
The idea behind Industrial and Commercial and Zoy Home Furnishing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Zoy Home vs. Nsfocus Information Technology
Zoy Home vs. HengFeng Information Technology
Zoy Home vs. Shenzhen SDG Information
Zoy Home vs. Biwin Storage Technology
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Equity Valuation
Check real value of public entities based on technical and fundamental data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY