Correlation Between Flat Glass and Zangge Holding

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

By analyzing existing cross correlation between Flat Glass Group and Zangge Holding Co, you can compare the effects of market volatilities on Flat Glass and Zangge Holding 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 Flat Glass with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flat Glass and Zangge Holding.

Diversification Opportunities for Flat Glass and Zangge Holding

0.0

Correlation Coefficient

Flat Glass  Zangge Holding

Pay attention - limited upside

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

Pair Corralation between Flat Glass and Zangge Holding

If you would invest (100.00) in Zangge Holding Co on September 25, 2024 and sell it today you would earn a total of  100.00  from holding Zangge Holding Co or generate -100.0% return on investment over 90 days.

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

Flat Glass Group  vs.  Zangge Holding Co

Flat Glass Group

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Flat Glass Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Flat Glass sustained solid returns over the last few months and may actually be approaching a breakup point.

Zangge Holding

Risk-Adjusted Performance

0 of 100

Modest

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

Pair Trading with Flat Glass and Zangge Holding

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

The idea behind Flat Glass Group and Zangge Holding 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.