Correlation Between China State and Zoy Home
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By analyzing existing cross correlation between China State Construction and Zoy Home Furnishing, you can compare the effects of market volatilities on China State 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 China State with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Zoy Home.
Diversification Opportunities for China State and Zoy Home
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zoy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Zoy Home go up and down completely randomly.
Pair Corralation between China State and Zoy Home
Assuming the 90 days trading horizon China State Construction is expected to generate 0.49 times more return on investment than Zoy Home. However, China State Construction is 2.04 times less risky than Zoy Home. It trades about 0.01 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.0 per unit of risk. If you would invest 591.00 in China State Construction on August 31, 2024 and sell it today you would earn a total of 7.00 from holding China State Construction or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Zoy Home Furnishing
Performance |
| Timeline |
| China State Construction |
| Zoy Home Furnishing |
China State and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Zoy Home
The main advantage of trading using opposite China State and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Guangdong Wens Foodstuff | China State vs. Great Sun Foods Co | China State vs. Tianjin Pengling Rubber | China State vs. Suzhou Xingye Material |
| Zoy Home vs. China State Construction | Zoy Home vs. China Merchants Shekou | Zoy Home vs. Huafa Industrial Co | Zoy Home vs. China International Capital |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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