Correlation Between Zoomlion Heavy and Zhejiang Daily
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By analyzing existing cross correlation between Zoomlion Heavy Industry and Zhejiang Daily Media, you can compare the effects of market volatilities on Zoomlion Heavy and Zhejiang Daily 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 Zoomlion Heavy with a short position of Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and Zhejiang Daily.
Diversification Opportunities for Zoomlion Heavy and Zhejiang Daily
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoomlion and Zhejiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media and Zoomlion Heavy 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 Zoomlion Heavy Industry are associated (or correlated) with Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Zoomlion Heavy i.e., Zoomlion Heavy and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and Zhejiang Daily
Assuming the 90 days trading horizon Zoomlion Heavy is expected to generate 3.39 times less return on investment than Zhejiang Daily. But when comparing it to its historical volatility, Zoomlion Heavy Industry is 1.34 times less risky than Zhejiang Daily. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Zhejiang Daily Media on September 24, 2024 and sell it today you would earn a total of 288.00 from holding Zhejiang Daily Media or generate 33.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zoomlion Heavy Industry vs. Zhejiang Daily Media
Performance |
Timeline |
Zoomlion Heavy Industry |
Zhejiang Daily Media |
Zoomlion Heavy and Zhejiang Daily Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoomlion Heavy and Zhejiang Daily
The main advantage of trading using opposite Zoomlion Heavy and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy position performs unexpectedly, Zhejiang Daily 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 Daily will offset losses from the drop in Zhejiang Daily's long position.Zoomlion Heavy vs. Zhejiang Daily Media | Zoomlion Heavy vs. Zhongtong Guomai Communication | Zoomlion Heavy vs. Guangzhou Jinyi Media | Zoomlion Heavy vs. Sichuan Jinshi Technology |
Zhejiang Daily vs. Agricultural Bank of | Zhejiang Daily vs. Industrial and Commercial | Zhejiang Daily vs. Bank of China | Zhejiang Daily vs. China Construction Bank |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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