Correlation Between Zoy Home and Wuhan Xianglong
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By analyzing existing cross correlation between Zoy Home Furnishing and Wuhan Xianglong Power, you can compare the effects of market volatilities on Zoy Home and Wuhan Xianglong 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 Wuhan Xianglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Wuhan Xianglong.
Diversification Opportunities for Zoy Home and Wuhan Xianglong
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zoy and Wuhan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Wuhan Xianglong Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Xianglong Power 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 Wuhan Xianglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Xianglong Power has no effect on the direction of Zoy Home i.e., Zoy Home and Wuhan Xianglong go up and down completely randomly.
Pair Corralation between Zoy Home and Wuhan Xianglong
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the Wuhan Xianglong. But the stock apears to be less risky and, when comparing its historical volatility, Zoy Home Furnishing is 1.46 times less risky than Wuhan Xianglong. The stock trades about -0.02 of its potential returns per unit of risk. The Wuhan Xianglong Power is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Wuhan Xianglong Power on November 27, 2024 and sell it today you would earn a total of 65.00 from holding Wuhan Xianglong Power or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Wuhan Xianglong Power
Performance |
| Timeline |
| Zoy Home Furnishing |
| Wuhan Xianglong Power |
Zoy Home and Wuhan Xianglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Wuhan Xianglong
The main advantage of trading using opposite Zoy Home and Wuhan Xianglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Wuhan Xianglong 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 Wuhan Xianglong will offset losses from the drop in Wuhan Xianglong's long position.| Zoy Home vs. Nsfocus Information Technology | Zoy Home vs. HengFeng Information Technology | Zoy Home vs. Shenzhen SDG Information | Zoy Home vs. Biwin Storage Technology |
| Wuhan Xianglong vs. Shenzhen Noposion Agrochemicals | Wuhan Xianglong vs. Jiangsu GDK Biotechnology | Wuhan Xianglong vs. Hefei Metalforming Mach | Wuhan Xianglong vs. Liaoning Chengda Biotechnology |
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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