Correlation Between Zotye Automobile and Zhengzhou Coal
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By analyzing existing cross correlation between Zotye Automobile Co and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Zotye Automobile and Zhengzhou Coal 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 Zotye Automobile with a short position of Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Zhengzhou Coal.
Diversification Opportunities for Zotye Automobile and Zhengzhou Coal
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zotye and Zhengzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining and Zotye Automobile 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 Zotye Automobile Co are associated (or correlated) with Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Zotye Automobile and Zhengzhou Coal
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 2.2 times more return on investment than Zhengzhou Coal. However, Zotye Automobile is 2.2 times more volatile than Zhengzhou Coal Mining. It trades about 0.26 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.13 per unit of risk. If you would invest 145.00 in Zotye Automobile Co on September 16, 2024 and sell it today you would earn a total of 150.00 from holding Zotye Automobile Co or generate 103.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zotye Automobile Co vs. Zhengzhou Coal Mining
Performance |
Timeline |
Zotye Automobile |
Zhengzhou Coal Mining |
Zotye Automobile and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zotye Automobile and Zhengzhou Coal
The main advantage of trading using opposite Zotye Automobile and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.Zotye Automobile vs. Hefei Metalforming Mach | Zotye Automobile vs. Chongqing Shunbo Aluminum | Zotye Automobile vs. Tongling Nonferrous Metals | Zotye Automobile vs. Tibet Huayu Mining |
Zhengzhou Coal vs. Cultural Investment Holdings | Zhengzhou Coal vs. Gome Telecom Equipment | Zhengzhou Coal vs. Holitech Technology Co | Zhengzhou Coal vs. Zotye Automobile 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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