Correlation Between Zoy Home and Bank of Changsha
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By analyzing existing cross correlation between Zoy Home Furnishing and Bank of Changsha, you can compare the effects of market volatilities on Zoy Home and Bank of Changsha 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 Bank of Changsha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Bank of Changsha.
Diversification Opportunities for Zoy Home and Bank of Changsha
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zoy and Bank is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Bank of Changsha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Changsha 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 Bank of Changsha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Changsha has no effect on the direction of Zoy Home i.e., Zoy Home and Bank of Changsha go up and down completely randomly.
Pair Corralation between Zoy Home and Bank of Changsha
Assuming the 90 days trading horizon Zoy Home is expected to generate 1.66 times less return on investment than Bank of Changsha. In addition to that, Zoy Home is 1.85 times more volatile than Bank of Changsha. It trades about 0.07 of its total potential returns per unit of risk. Bank of Changsha is currently generating about 0.21 per unit of volatility. If you would invest 863.00 in Bank of Changsha on November 2, 2024 and sell it today you would earn a total of 59.00 from holding Bank of Changsha or generate 6.84% 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. Bank of Changsha
Performance |
| Timeline |
| Zoy Home Furnishing |
| Bank of Changsha |
Zoy Home and Bank of Changsha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Bank of Changsha
The main advantage of trading using opposite Zoy Home and Bank of Changsha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Bank of Changsha 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 Bank of Changsha will offset losses from the drop in Bank of Changsha's long position.| Zoy Home vs. Harvest Fund Management | Zoy Home vs. Dazhong Transportation Group | Zoy Home vs. Shandong Hi Speed RoadBridge | Zoy Home vs. Cicc Fund Management |
| Bank of Changsha vs. Nanxing Furniture Machinery | Bank of Changsha vs. Lutian Machinery Co | Bank of Changsha vs. Senci Electric Machinery | Bank of Changsha vs. Offshore Oil Engineering |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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