Correlation Between Zoy Home and GUOMAI Culture
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By analyzing existing cross correlation between Zoy Home Furnishing and GUOMAI Culture Media, you can compare the effects of market volatilities on Zoy Home and GUOMAI Culture 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 GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and GUOMAI Culture.
Diversification Opportunities for Zoy Home and GUOMAI Culture
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoy and GUOMAI is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media 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 GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Zoy Home i.e., Zoy Home and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Zoy Home and GUOMAI Culture
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the GUOMAI Culture. But the stock apears to be less risky and, when comparing its historical volatility, Zoy Home Furnishing is 1.47 times less risky than GUOMAI Culture. The stock trades about 0.0 of its potential returns per unit of risk. The GUOMAI Culture Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,815 in GUOMAI Culture Media on October 16, 2024 and sell it today you would earn a total of 687.00 from holding GUOMAI Culture Media or generate 37.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. GUOMAI Culture Media
Performance |
| Timeline |
| Zoy Home Furnishing |
| GUOMAI Culture Media |
Zoy Home and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and GUOMAI Culture
The main advantage of trading using opposite Zoy Home and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Zoy Home vs. Shenyang Huitian Thermal | Zoy Home vs. North Copper Shanxi | Zoy Home vs. Shanghai Yanpu Metal | Zoy Home vs. Guangdong Jingyi Metal |
| GUOMAI Culture vs. Hunan Tyen Machinery | GUOMAI Culture vs. Zoy Home Furnishing | GUOMAI Culture vs. Nanxing Furniture Machinery | GUOMAI Culture vs. Shenzhen Noposion Agrochemicals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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