Correlation Between Hunan Mendale and Zoy Home
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Zoy Home Furnishing, you can compare the effects of market volatilities on Hunan Mendale and Zoy Home 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 Hunan Mendale with a short position of Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Zoy Home.
Diversification Opportunities for Hunan Mendale and Zoy Home
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Zoy is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Zoy Home go up and down completely randomly.
Pair Corralation between Hunan Mendale and Zoy Home
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.24 times more return on investment than Zoy Home. However, Hunan Mendale is 1.24 times more volatile than Zoy Home Furnishing. It trades about 0.29 of its potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.29 per unit of risk. If you would invest 189.00 in Hunan Mendale Hometextile on September 15, 2024 and sell it today you would earn a total of 140.00 from holding Hunan Mendale Hometextile or generate 74.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hunan Mendale Hometextile vs. Zoy Home Furnishing
Performance |
Timeline |
Hunan Mendale Hometextile |
Zoy Home Furnishing |
Hunan Mendale and Zoy Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hunan Mendale and Zoy Home
The main advantage of trading using opposite Hunan Mendale and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.Hunan Mendale vs. Nanjing Putian Telecommunications | Hunan Mendale vs. Tianjin Realty Development | Hunan Mendale vs. Kangyue Technology Co | Hunan Mendale vs. Shenzhen Hifuture Electric |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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