Correlation Between Zoy Home and Central China
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By analyzing existing cross correlation between Zoy Home Furnishing and Central China Land, you can compare the effects of market volatilities on Zoy Home and Central China 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 Zoy Home with a short position of Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Central China.
Diversification Opportunities for Zoy Home and Central China
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoy and Central is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land and Zoy Home 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 Zoy Home Furnishing are associated (or correlated) with Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Zoy Home i.e., Zoy Home and Central China go up and down completely randomly.
Pair Corralation between Zoy Home and Central China
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the Central China. In addition to that, Zoy Home is 1.45 times more volatile than Central China Land. It trades about -0.04 of its total potential returns per unit of risk. Central China Land is currently generating about 0.06 per unit of volatility. If you would invest 966.00 in Central China Land on September 3, 2024 and sell it today you would earn a total of 136.00 from holding Central China Land or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Central China Land
Performance |
| Timeline |
| Zoy Home Furnishing |
| Central China Land |
Zoy Home and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Central China
The main advantage of trading using opposite Zoy Home and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Zoy Home vs. Dongguan Tarry Electronics | Zoy Home vs. Kunshan Guoli Electronic | Zoy Home vs. Guilin Seamild Foods | Zoy Home vs. Great Sun Foods Co |
| Central China vs. Uroica Mining Safety | Central China vs. Anhui Jianghuai Automobile | Central China vs. Ye Chiu Metal | Central China vs. Zhejiang Yayi Metal |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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