Correlation Between Anhui Transport and Zotye Automobile
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By analyzing existing cross correlation between Anhui Transport Consulting and Zotye Automobile Co, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Zotye Automobile.
Diversification Opportunities for Anhui Transport and Zotye Automobile
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Zotye is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Zotye Automobile go up and down completely randomly.
Pair Corralation between Anhui Transport and Zotye Automobile
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.33 times more return on investment than Zotye Automobile. However, Anhui Transport Consulting is 2.99 times less risky than Zotye Automobile. It trades about -0.23 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about -0.29 per unit of risk. If you would invest 924.00 in Anhui Transport Consulting on October 28, 2024 and sell it today you would lose (54.00) from holding Anhui Transport Consulting or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Zotye Automobile Co
Performance |
| Timeline |
| Anhui Transport Cons |
| Zotye Automobile |
Anhui Transport and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Zotye Automobile
The main advantage of trading using opposite Anhui Transport and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. Bank of Suzhou | Anhui Transport vs. Panda Financial Holding | Anhui Transport vs. Shanghai Ziyan Foods | Anhui Transport vs. GRG Banking Equipment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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