Correlation Between Zoy Home and Guangdong Tianhe
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By analyzing existing cross correlation between Zoy Home Furnishing and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Zoy Home and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Guangdong Tianhe.
Diversification Opportunities for Zoy Home and Guangdong Tianhe
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Zoy Home i.e., Zoy Home and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Zoy Home and Guangdong Tianhe
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.45 times more return on investment than Guangdong Tianhe. However, Zoy Home is 1.45 times more volatile than Guangdong Tianhe Agricultural. It trades about -0.21 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.34 per unit of risk. If you would invest 1,246 in Zoy Home Furnishing on October 14, 2024 and sell it today you would lose (238.00) from holding Zoy Home Furnishing or give up 19.1% 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. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Zoy Home Furnishing |
| Guangdong Tianhe Agr |
Zoy Home and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Guangdong Tianhe
The main advantage of trading using opposite Zoy Home and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Zoy Home vs. Telling Telecommunication Holding | Zoy Home vs. Eyebright Medical Technology | Zoy Home vs. Nanjing Putian Telecommunications | Zoy Home vs. 360 Security Technology |
| Guangdong Tianhe vs. Penyao Environmental Protection | Guangdong Tianhe vs. GreenTech Environmental Co | Guangdong Tianhe vs. Zoy Home Furnishing | Guangdong Tianhe vs. Fujian Nanwang Environment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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