Correlation Between Zoy Home and Xinxiang Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zoy Home Furnishing and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Zoy Home and Xinxiang Chemical 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 Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Xinxiang Chemical.
Diversification Opportunities for Zoy Home and Xinxiang Chemical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Xinxiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber 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 Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Zoy Home i.e., Zoy Home and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Zoy Home and Xinxiang Chemical
Assuming the 90 days trading horizon Zoy Home is expected to generate 1.35 times less return on investment than Xinxiang Chemical. But when comparing it to its historical volatility, Zoy Home Furnishing is 2.25 times less risky than Xinxiang Chemical. It trades about 0.33 of its potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 374.00 in Xinxiang Chemical Fiber on September 16, 2024 and sell it today you would earn a total of 80.00 from holding Xinxiang Chemical Fiber or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Zoy Home Furnishing |
| Xinxiang Chemical Fiber |
Zoy Home and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Xinxiang Chemical
The main advantage of trading using opposite Zoy Home and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Zoy Home vs. Lutian Machinery Co | Zoy Home vs. China Longyuan Power | Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Bank of China |
| Xinxiang Chemical vs. Shandong Homey Aquatic | Xinxiang Chemical vs. Great Sun Foods Co | Xinxiang Chemical vs. Nanjing OLO Home | Xinxiang Chemical vs. Zoy Home Furnishing |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |