Correlation Between Zoy Home and Ningbo Construction
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By analyzing existing cross correlation between Zoy Home Furnishing and Ningbo Construction Co, you can compare the effects of market volatilities on Zoy Home and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Ningbo Construction.
Diversification Opportunities for Zoy Home and Ningbo Construction
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoy and Ningbo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Zoy Home i.e., Zoy Home and Ningbo Construction go up and down completely randomly.
Pair Corralation between Zoy Home and Ningbo Construction
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.1 times more return on investment than Ningbo Construction. However, Zoy Home is 1.1 times more volatile than Ningbo Construction Co. It trades about 0.01 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about -0.06 per unit of risk. If you would invest 1,154 in Zoy Home Furnishing on October 30, 2024 and sell it today you would lose (20.00) from holding Zoy Home Furnishing or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Ningbo Construction Co
Performance |
| Timeline |
| Zoy Home Furnishing |
| Ningbo Construction |
Zoy Home and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Ningbo Construction
The main advantage of trading using opposite Zoy Home and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Zoy Home vs. PKU HealthCare Corp | Zoy Home vs. Elite Color Environmental | Zoy Home vs. Sinocat Environmental Technology | Zoy Home vs. Hangzhou Guotai Environmental |
| Ningbo Construction vs. Industrial and Commercial | Ningbo Construction vs. China Construction Bank | Ningbo Construction vs. Agricultural Bank of | Ningbo Construction vs. Bank of China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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