Correlation Between Gem Year and Zoomlion Heavy
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By analyzing existing cross correlation between Gem Year Industrial Co and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Gem Year and Zoomlion Heavy 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 Gem Year with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Zoomlion Heavy.
Diversification Opportunities for Gem Year and Zoomlion Heavy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Zoomlion is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Gem Year i.e., Gem Year and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Gem Year and Zoomlion Heavy
Assuming the 90 days trading horizon Gem Year is expected to generate 13.84 times less return on investment than Zoomlion Heavy. In addition to that, Gem Year is 1.26 times more volatile than Zoomlion Heavy Industry. It trades about 0.0 of its total potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.04 per unit of volatility. If you would invest 534.00 in Zoomlion Heavy Industry on October 12, 2024 and sell it today you would earn a total of 152.00 from holding Zoomlion Heavy Industry or generate 28.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gem Year Industrial Co vs. Zoomlion Heavy Industry
Performance |
Timeline |
Gem Year Industrial |
Zoomlion Heavy Industry |
Gem Year and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gem Year and Zoomlion Heavy
The main advantage of trading using opposite Gem Year and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.Gem Year vs. Shaanxi Meineng Clean | Gem Year vs. Duzhe Publishing Media | Gem Year vs. Tinavi Medical Technologies | Gem Year vs. Shandong Publishing Media |
Zoomlion Heavy vs. Sunwave Communications Co | Zoomlion Heavy vs. Qumei Furniture Group | Zoomlion Heavy vs. State Grid InformationCommunication | Zoomlion Heavy vs. Wuhan Yangtze Communication |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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