Correlation Between GreenTech Environmental and Zoy Home
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By analyzing existing cross correlation between GreenTech Environmental Co and Zoy Home Furnishing, you can compare the effects of market volatilities on GreenTech Environmental and Zoy Home 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 GreenTech Environmental with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Zoy Home.
Diversification Opportunities for GreenTech Environmental and Zoy Home
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GreenTech and Zoy is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and Zoy Home go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Zoy Home
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to generate 0.9 times more return on investment than Zoy Home. However, GreenTech Environmental Co is 1.11 times less risky than Zoy Home. It trades about 0.01 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.0 per unit of risk. If you would invest 1,347 in GreenTech Environmental Co on October 11, 2024 and sell it today you would lose (8.00) from holding GreenTech Environmental Co or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Zoy Home Furnishing
Performance |
| Timeline |
| GreenTech Environmental |
| Zoy Home Furnishing |
GreenTech Environmental and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Zoy Home
The main advantage of trading using opposite GreenTech Environmental and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| GreenTech Environmental vs. Fujian Boss Software | GreenTech Environmental vs. Hangzhou Pinming Software | GreenTech Environmental vs. Linewell Software Co | GreenTech Environmental vs. Inspur Software Co |
| Zoy Home vs. Guangzhou Tinci Materials | Zoy Home vs. Ningbo Tip Rubber | Zoy Home vs. King Strong New Material | Zoy Home vs. GreenTech Environmental 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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