Correlation Between Zoy Home and Longxing Chemical
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By analyzing existing cross correlation between Zoy Home Furnishing and Longxing Chemical Stock, you can compare the effects of market volatilities on Zoy Home and Longxing 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Longxing Chemical.
Diversification Opportunities for Zoy Home and Longxing Chemical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Longxing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Zoy Home i.e., Zoy Home and Longxing Chemical go up and down completely randomly.
Pair Corralation between Zoy Home and Longxing Chemical
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the Longxing Chemical. In addition to that, Zoy Home is 1.08 times more volatile than Longxing Chemical Stock. It trades about -0.15 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.06 per unit of volatility. If you would invest 567.00 in Longxing Chemical Stock on October 9, 2024 and sell it today you would lose (33.00) from holding Longxing Chemical Stock or give up 5.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Longxing Chemical Stock
Performance |
| Timeline |
| Zoy Home Furnishing |
| Longxing Chemical Stock |
Zoy Home and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Longxing Chemical
The main advantage of trading using opposite Zoy Home and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Longxing 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Zoy Home vs. HeNan Splendor Science | Zoy Home vs. GRG Banking Equipment | Zoy Home vs. Bomesc Offshore Engineering | Zoy Home vs. Qilu Bank Co |
| Longxing Chemical vs. Chengtun Mining Group | Longxing Chemical vs. Dosilicon Co | Longxing Chemical vs. Maoming Petro Chemical Shihua | Longxing Chemical vs. Guizhou Chanhen Chemical |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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