Correlation Between Zoy Home and China Express
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By analyzing existing cross correlation between Zoy Home Furnishing and China Express Airlines, you can compare the effects of market volatilities on Zoy Home and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and China Express.
Diversification Opportunities for Zoy Home and China Express
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Zoy Home i.e., Zoy Home and China Express go up and down completely randomly.
Pair Corralation between Zoy Home and China Express
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.11 times more return on investment than China Express. However, Zoy Home is 1.11 times more volatile than China Express Airlines. It trades about 0.27 of its potential returns per unit of risk. China Express Airlines is currently generating about -0.09 per unit of risk. If you would invest 1,013 in Zoy Home Furnishing on September 5, 2024 and sell it today you would earn a total of 144.00 from holding Zoy Home Furnishing or generate 14.22% 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. China Express Airlines
Performance |
| Timeline |
| Zoy Home Furnishing |
| China Express Airlines |
Zoy Home and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and China Express
The main advantage of trading using opposite Zoy Home and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Zoy Home vs. Industrial and Commercial | Zoy Home vs. Agricultural Bank of | Zoy Home vs. China Construction Bank | Zoy Home vs. Bank of China |
| China Express vs. Agricultural Bank of | China Express vs. Industrial and Commercial | China Express vs. Bank of China | China Express vs. China Construction Bank |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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