Correlation Between Sichuan Teway and Zotye Automobile
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By analyzing existing cross correlation between Sichuan Teway Food and Zotye Automobile Co, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Zotye Automobile.
Diversification Opportunities for Sichuan Teway and Zotye Automobile
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Zotye is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Zotye Automobile go up and down completely randomly.
Pair Corralation between Sichuan Teway and Zotye Automobile
Assuming the 90 days trading horizon Sichuan Teway Food is expected to generate 0.56 times more return on investment than Zotye Automobile. However, Sichuan Teway Food is 1.79 times less risky than Zotye Automobile. It trades about -0.03 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 2,005 in Sichuan Teway Food on September 3, 2024 and sell it today you would lose (623.00) from holding Sichuan Teway Food or give up 31.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Zotye Automobile Co
Performance |
| Timeline |
| Sichuan Teway Food |
| Zotye Automobile |
Sichuan Teway and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Zotye Automobile
The main advantage of trading using opposite Sichuan Teway and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. Beijing Wantai Biological | Sichuan Teway vs. Aluminum Corp of | Sichuan Teway vs. COL Digital Publishing | Sichuan Teway vs. Shaanxi Meineng Clean |
| Zotye Automobile vs. Xinjiang Baodi Mining | Zotye Automobile vs. Quectel Wireless Solutions | Zotye Automobile vs. Shanghai Metersbonwe FashionAccessories | Zotye Automobile vs. Pengxin International Mining |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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