Correlation Between Zinus and Guyoung Technology

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

By analyzing existing cross correlation between Zinus Inc and Guyoung Technology Co, you can compare the effects of market volatilities on Zinus and Guyoung Technology 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 Zinus with a short position of Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinus and Guyoung Technology.

Diversification Opportunities for Zinus and Guyoung Technology

-0.19

Correlation Coefficient

Zinus  Guyoung Technology

Good diversification

The 3 months correlation between Zinus and Guyoung is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Zinus Inc and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung Technology and Zinus 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 Zinus Inc are associated (or correlated) with Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of Zinus i.e., Zinus and Guyoung Technology go up and down completely randomly.

Pair Corralation between Zinus and Guyoung Technology

Assuming the 90 days trading horizon Zinus Inc is expected to generate 1.53 times more return on investment than Guyoung Technology. However, Zinus is 1.53 times more volatile than Guyoung Technology Co. It trades about 0.16 of its potential returns per unit of risk. Guyoung Technology Co is currently generating about -0.01 per unit of risk. If you would invest  1,341,818  in Zinus Inc on October 22, 2024 and sell it today you would earn a total of  1,338,182  from holding Zinus Inc or generate 99.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Zinus Inc  vs.  Guyoung Technology Co

Zinus Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zinus Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Zinus sustained solid returns over the last few months and may actually be approaching a breakup point.

Guyoung Technology

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Zinus and Guyoung Technology

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

The idea behind Zinus Inc and Guyoung Technology Co 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.