Correlation Between Zoy Home and Beijing Jiaman
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By analyzing existing cross correlation between Zoy Home Furnishing and Beijing Jiaman Dress, you can compare the effects of market volatilities on Zoy Home and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Beijing Jiaman.
Diversification Opportunities for Zoy Home and Beijing Jiaman
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Zoy Home i.e., Zoy Home and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Zoy Home and Beijing Jiaman
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.14 times more return on investment than Beijing Jiaman. However, Zoy Home is 1.14 times more volatile than Beijing Jiaman Dress. It trades about 0.09 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.09 per unit of risk. If you would invest 1,032 in Zoy Home Furnishing on September 5, 2024 and sell it today you would earn a total of 98.00 from holding Zoy Home Furnishing or generate 9.5% 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. Beijing Jiaman Dress
Performance |
| Timeline |
| Zoy Home Furnishing |
| Beijing Jiaman Dress |
Zoy Home and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Beijing Jiaman
The main advantage of trading using opposite Zoy Home and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman'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 |
| Beijing Jiaman vs. Beijing Sanyuan Foods | Beijing Jiaman vs. Xiwang Foodstuffs Co | Beijing Jiaman vs. DO Home Collection | Beijing Jiaman vs. Zoy Home Furnishing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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