Correlation Between Zoy Home and Thinkingdom Media
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By analyzing existing cross correlation between Zoy Home Furnishing and Thinkingdom Media Group, you can compare the effects of market volatilities on Zoy Home and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Thinkingdom Media.
Diversification Opportunities for Zoy Home and Thinkingdom Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoy and Thinkingdom is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Zoy Home i.e., Zoy Home and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Zoy Home and Thinkingdom Media
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 0.97 times more return on investment than Thinkingdom Media. However, Zoy Home Furnishing is 1.03 times less risky than Thinkingdom Media. It trades about 0.3 of its potential returns per unit of risk. Thinkingdom Media Group is currently generating about -0.11 per unit of risk. If you would invest 999.00 in Zoy Home Furnishing on November 6, 2024 and sell it today you would earn a total of 135.00 from holding Zoy Home Furnishing or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Thinkingdom Media Group
Performance |
| Timeline |
| Zoy Home Furnishing |
| Thinkingdom Media |
Zoy Home and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Thinkingdom Media
The main advantage of trading using opposite Zoy Home and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media's long position.| Zoy Home vs. Fuda Alloy Materials | Zoy Home vs. Advanced Technology Materials | Zoy Home vs. Jilin OLED Material | Zoy Home vs. Hengyi Petrochemical Co |
| Thinkingdom Media vs. Queclink Wireless Solutions | Thinkingdom Media vs. Sinomach Automobile Co | Thinkingdom Media vs. Guangxi Wuzhou Communications | Thinkingdom Media vs. Beijing Mainstreets Investment |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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