Correlation Between ZKH Group and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both ZKH Group and Tyson Foods at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZKH Group and Tyson Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZKH Group Limited and Tyson Foods, you can compare the effects of market volatilities on ZKH Group and Tyson Foods 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 ZKH Group with a short position of Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKH Group and Tyson Foods.
Diversification Opportunities for ZKH Group and Tyson Foods
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZKH and Tyson is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ZKH Group Limited and Tyson Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods and ZKH Group 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 ZKH Group Limited are associated (or correlated) with Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods has no effect on the direction of ZKH Group i.e., ZKH Group and Tyson Foods go up and down completely randomly.
Pair Corralation between ZKH Group and Tyson Foods
Considering the 90-day investment horizon ZKH Group Limited is expected to generate 2.27 times more return on investment than Tyson Foods. However, ZKH Group is 2.27 times more volatile than Tyson Foods. It trades about 0.08 of its potential returns per unit of risk. Tyson Foods is currently generating about 0.0 per unit of risk. If you would invest 297.00 in ZKH Group Limited on August 31, 2024 and sell it today you would earn a total of 45.00 from holding ZKH Group Limited or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZKH Group Limited vs. Tyson Foods
Performance |
| Timeline |
| ZKH Group Limited |
| Tyson Foods |
ZKH Group and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZKH Group and Tyson Foods
The main advantage of trading using opposite ZKH Group and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKH Group position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| ZKH Group vs. NETGEAR | ZKH Group vs. Coupang LLC | ZKH Group vs. BCE Inc | ZKH Group vs. Meiwu Technology Co |
| Tyson Foods vs. Cal Maine Foods | Tyson Foods vs. Dole PLC | Tyson Foods vs. Adecoagro SA | Tyson Foods vs. Fresh Del Monte |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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