Correlation Between Nanjing Vishee and Zotye Automobile
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By analyzing existing cross correlation between Nanjing Vishee Medical and Zotye Automobile Co, you can compare the effects of market volatilities on Nanjing Vishee and Zotye Automobile 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 Nanjing Vishee with a short position of Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Zotye Automobile.
Diversification Opportunities for Nanjing Vishee and Zotye Automobile
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Zotye is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile and Nanjing Vishee 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 Nanjing Vishee Medical are associated (or correlated) with Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Zotye Automobile go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Zotye Automobile
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to under-perform the Zotye Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Nanjing Vishee Medical is 1.08 times less risky than Zotye Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Zotye Automobile Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Zotye Automobile Co on October 12, 2024 and sell it today you would lose (215.00) from holding Zotye Automobile Co or give up 48.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Vishee Medical vs. Zotye Automobile Co
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Zotye Automobile |
Nanjing Vishee and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Zotye Automobile
The main advantage of trading using opposite Nanjing Vishee and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Nanjing Vishee vs. Longxing Chemical Stock | Nanjing Vishee vs. Maoming Petro Chemical Shihua | Nanjing Vishee vs. Jinsanjiang Silicon Material | Nanjing Vishee vs. Guizhou Chanhen Chemical |
| Zotye Automobile vs. China Sports Industry | Zotye Automobile vs. Elite Color Environmental | Zotye Automobile vs. Gansu Jiu Steel | Zotye Automobile vs. Eit Environmental Development |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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