Correlation Between Zoy Home and Changjiang Jinggong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zoy Home Furnishing and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Zoy Home and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Changjiang Jinggong.
Diversification Opportunities for Zoy Home and Changjiang Jinggong
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoy and Changjiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Zoy Home i.e., Zoy Home and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Zoy Home and Changjiang Jinggong
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 2.16 times more return on investment than Changjiang Jinggong. However, Zoy Home is 2.16 times more volatile than Changjiang Jinggong Steel. It trades about 0.0 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.04 per unit of risk. If you would invest 1,368 in Zoy Home Furnishing on October 16, 2024 and sell it today you would lose (357.00) from holding Zoy Home Furnishing or give up 26.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Zoy Home Furnishing |
| Changjiang Jinggong Steel |
Zoy Home and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Changjiang Jinggong
The main advantage of trading using opposite Zoy Home and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong'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 |
| Changjiang Jinggong vs. Shuhua Sports Co | Changjiang Jinggong vs. Jiangsu Jinling Sports | Changjiang Jinggong vs. Olympic Circuit Technology | Changjiang Jinggong vs. China Sports Industry |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |