Correlation Between Zoy Home and Chison Medical
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By analyzing existing cross correlation between Zoy Home Furnishing and Chison Medical Technologies, you can compare the effects of market volatilities on Zoy Home and Chison Medical 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 Chison Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Chison Medical.
Diversification Opportunities for Zoy Home and Chison Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and Chison is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Chison Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chison Medical Techn 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 Chison Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chison Medical Techn has no effect on the direction of Zoy Home i.e., Zoy Home and Chison Medical go up and down completely randomly.
Pair Corralation between Zoy Home and Chison Medical
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 0.98 times more return on investment than Chison Medical. However, Zoy Home Furnishing is 1.02 times less risky than Chison Medical. It trades about 0.01 of its potential returns per unit of risk. Chison Medical Technologies is currently generating about 0.01 per unit of risk. If you would invest 1,329 in Zoy Home Furnishing on September 12, 2024 and sell it today you would lose (147.00) from holding Zoy Home Furnishing or give up 11.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Chison Medical Technologies
Performance |
| Timeline |
| Zoy Home Furnishing |
| Chison Medical Techn |
Zoy Home and Chison Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Chison Medical
The main advantage of trading using opposite Zoy Home and Chison Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Chison Medical 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 Chison Medical will offset losses from the drop in Chison Medical's long position.| Zoy Home vs. Lutian Machinery Co | Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Bank of China | Zoy Home vs. Gansu Jiu Steel |
| Chison Medical vs. Cultural Investment Holdings | Chison Medical vs. Gome Telecom Equipment | Chison Medical vs. Holitech Technology Co | Chison Medical vs. Zotye Automobile Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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