Correlation Between Zoy Home and Shanghai Yct
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By analyzing existing cross correlation between Zoy Home Furnishing and Shanghai Yct Electronics, you can compare the effects of market volatilities on Zoy Home and Shanghai Yct 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 Shanghai Yct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Shanghai Yct.
Diversification Opportunities for Zoy Home and Shanghai Yct
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Shanghai Yct Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yct Electronics 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 Shanghai Yct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yct Electronics has no effect on the direction of Zoy Home i.e., Zoy Home and Shanghai Yct go up and down completely randomly.
Pair Corralation between Zoy Home and Shanghai Yct
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 0.71 times more return on investment than Shanghai Yct. However, Zoy Home Furnishing is 1.41 times less risky than Shanghai Yct. It trades about 0.11 of its potential returns per unit of risk. Shanghai Yct Electronics is currently generating about -0.14 per unit of risk. If you would invest 1,054 in Zoy Home Furnishing on August 30, 2024 and sell it today you would earn a total of 61.00 from holding Zoy Home Furnishing or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Shanghai Yct Electronics
Performance |
| Timeline |
| Zoy Home Furnishing |
| Shanghai Yct Electronics |
Zoy Home and Shanghai Yct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Shanghai Yct
The main advantage of trading using opposite Zoy Home and Shanghai Yct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Shanghai Yct 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 Shanghai Yct will offset losses from the drop in Shanghai Yct's 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 |
| Shanghai Yct vs. Luolai Home Textile | Shanghai Yct vs. StarPower Semiconductor | Shanghai Yct vs. Zoy Home Furnishing | Shanghai Yct vs. Qumei Furniture Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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