Correlation Between Zoje Resources and Zhejiang Tailin

Can any of the company-specific risk be diversified away by investing in both Zoje Resources and Zhejiang Tailin 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 Zoje Resources and Zhejiang Tailin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zoje Resources Investment and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Zoje Resources and Zhejiang Tailin 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 Zoje Resources with a short position of Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Zhejiang Tailin.

Diversification Opportunities for Zoje Resources and Zhejiang Tailin

0.0

Correlation Coefficient

Zoje Resources  Zhejiang Tailin

Pay attention - limited upside

The 3 months correlation between Zoje and Zhejiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe and Zoje Resources 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 Zoje Resources Investment are associated (or correlated) with Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Zoje Resources i.e., Zoje Resources and Zhejiang Tailin go up and down completely randomly.

Pair Corralation between Zoje Resources and Zhejiang Tailin

If you would invest  112.00  in Zoje Resources Investment on October 9, 2024 and sell it today you would earn a total of  140.00  from holding Zoje Resources Investment or generate 125.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zoje Resources Investment  vs.  Zhejiang Tailin Bioengineering

Zoje Resources Investment

Risk-Adjusted Performance

9 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Zoje Resources Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zoje Resources sustained solid returns over the last few months and may actually be approaching a breakup point.

Zhejiang Tailin Bioe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zhejiang Tailin Bioengineering has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Zhejiang Tailin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Zoje Resources and Zhejiang Tailin

The main advantage of trading using opposite Zoje Resources and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.

The idea behind Zoje Resources Investment and Zhejiang Tailin Bioengineering pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.