Correlation Between ZhongAn Online and Vita Coco
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and Vita Coco 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 ZhongAn Online and Vita Coco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and Vita Coco, you can compare the effects of market volatilities on ZhongAn Online and Vita Coco 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 ZhongAn Online with a short position of Vita Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Vita Coco.
Diversification Opportunities for ZhongAn Online and Vita Coco
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZhongAn and Vita is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and Vita Coco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Coco and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with Vita Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Coco has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and Vita Coco go up and down completely randomly.
Pair Corralation between ZhongAn Online and Vita Coco
Assuming the 90 days horizon ZhongAn Online P is expected to under-perform the Vita Coco. In addition to that, ZhongAn Online is 1.11 times more volatile than Vita Coco. It trades about -0.05 of its total potential returns per unit of risk. Vita Coco is currently generating about 0.08 per unit of volatility. If you would invest 1,349 in Vita Coco on October 11, 2024 and sell it today you would earn a total of 2,049 from holding Vita Coco or generate 151.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. Vita Coco
Performance |
| Timeline |
| ZhongAn Online P |
| Vita Coco |
ZhongAn Online and Vita Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and Vita Coco
The main advantage of trading using opposite ZhongAn Online and Vita Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, Vita Coco 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 Vita Coco will offset losses from the drop in Vita Coco's long position.| ZhongAn Online vs. Progressive Corp | ZhongAn Online vs. White Mountains Insurance | ZhongAn Online vs. Chubb | ZhongAn Online vs. W R Berkley |
| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |