Correlation Between Kingclean Electric and Zotye Automobile
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By analyzing existing cross correlation between Kingclean Electric Co and Zotye Automobile Co, you can compare the effects of market volatilities on Kingclean Electric 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 Kingclean Electric with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Zotye Automobile.
Diversification Opportunities for Kingclean Electric and Zotye Automobile
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kingclean and Zotye is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Kingclean Electric 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 Kingclean Electric Co 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 Kingclean Electric i.e., Kingclean Electric and Zotye Automobile go up and down completely randomly.
Pair Corralation between Kingclean Electric and Zotye Automobile
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Zotye Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Kingclean Electric Co is 3.32 times less risky than Zotye Automobile. The stock trades about -0.25 of its potential returns per unit of risk. The Zotye Automobile Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Zotye Automobile Co on August 29, 2024 and sell it today you would earn a total of 18.00 from holding Zotye Automobile Co or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Zotye Automobile Co
Performance |
| Timeline |
| Kingclean Electric |
| Zotye Automobile |
Kingclean Electric and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Zotye Automobile
The main advantage of trading using opposite Kingclean Electric and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric 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.| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
| Zotye Automobile vs. Caihong Display Devices | Zotye Automobile vs. Sinomach Automobile Co | Zotye Automobile vs. Lander Sports Development | Zotye Automobile vs. Songz Automobile Air |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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