Correlation Between ZhongAn Online and ZenaTech
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and ZenaTech 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 ZenaTech 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 ZenaTech, you can compare the effects of market volatilities on ZhongAn Online and ZenaTech 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 ZenaTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and ZenaTech.
Diversification Opportunities for ZhongAn Online and ZenaTech
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZhongAn and ZenaTech is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and ZenaTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZenaTech 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 ZenaTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZenaTech has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and ZenaTech go up and down completely randomly.
Pair Corralation between ZhongAn Online and ZenaTech
Assuming the 90 days horizon ZhongAn Online P is expected to under-perform the ZenaTech. But the pink sheet apears to be less risky and, when comparing its historical volatility, ZhongAn Online P is 9.72 times less risky than ZenaTech. The pink sheet trades about -0.05 of its potential returns per unit of risk. The ZenaTech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 880.00 in ZenaTech on November 9, 2024 and sell it today you would lose (385.00) from holding ZenaTech or give up 43.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 17.85% |
| Values | Daily Returns |
ZhongAn Online P vs. ZenaTech
Performance |
| Timeline |
| ZhongAn Online P |
| ZenaTech |
ZhongAn Online and ZenaTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and ZenaTech
The main advantage of trading using opposite ZhongAn Online and ZenaTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, ZenaTech 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 ZenaTech will offset losses from the drop in ZenaTech's long position.| ZhongAn Online vs. Progressive Corp | ZhongAn Online vs. White Mountains Insurance | ZhongAn Online vs. Chubb | ZhongAn Online vs. W R Berkley |
| ZenaTech vs. Marine Products | ZenaTech vs. Paysafe | ZenaTech vs. Uber Technologies | ZenaTech vs. Senmiao Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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