Correlation Between China Construction and Zotye Automobile
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By analyzing existing cross correlation between China Construction Bank and Zotye Automobile Co, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Zotye Automobile.
Diversification Opportunities for China Construction and Zotye Automobile
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zotye is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and China Construction 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 Construction Bank 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 China Construction i.e., China Construction and Zotye Automobile go up and down completely randomly.
Pair Corralation between China Construction and Zotye Automobile
Assuming the 90 days trading horizon China Construction Bank is expected to generate 0.32 times more return on investment than Zotye Automobile. However, China Construction Bank is 3.08 times less risky than Zotye Automobile. It trades about 0.08 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.01 per unit of risk. If you would invest 569.00 in China Construction Bank on November 27, 2024 and sell it today you would earn a total of 289.00 from holding China Construction Bank or generate 50.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Zotye Automobile Co
Performance |
| Timeline |
| China Construction Bank |
| Zotye Automobile |
China Construction and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Zotye Automobile
The main advantage of trading using opposite China Construction and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Innovative Medical Management | China Construction vs. Changjiang Publishing Media | China Construction vs. Duzhe Publishing Media | China Construction vs. Huaxia Fund Management |
| Zotye Automobile vs. Dhc Software Co | Zotye Automobile vs. YiDong Electronics Technology | Zotye Automobile vs. LianChuang Electronic Technology | Zotye Automobile vs. Circuit Fabology Microelectronics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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