Correlation Between Zoy Home and Zhejiang JIULI
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By analyzing existing cross correlation between Zoy Home Furnishing and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Zoy Home and Zhejiang JIULI 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 Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Zhejiang JIULI.
Diversification Opportunities for Zoy Home and Zhejiang JIULI
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi 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 Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Zoy Home i.e., Zoy Home and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Zoy Home and Zhejiang JIULI
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.47 times more return on investment than Zhejiang JIULI. However, Zoy Home is 1.47 times more volatile than Zhejiang JIULI Hi tech. It trades about 0.07 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.04 per unit of risk. If you would invest 1,071 in Zoy Home Furnishing on August 29, 2024 and sell it today you would earn a total of 36.00 from holding Zoy Home Furnishing or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Zoy Home Furnishing |
| Zhejiang JIULI Hi |
Zoy Home and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Zhejiang JIULI
The main advantage of trading using opposite Zoy Home and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Zoy Home vs. Agricultural Bank of | Zoy Home vs. Industrial and Commercial | Zoy Home vs. Bank of China | Zoy Home vs. China Construction Bank |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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