Correlation Between Zoomlion Heavy and Industrial
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By analyzing existing cross correlation between Zoomlion Heavy Industry and Industrial and Commercial, you can compare the effects of market volatilities on Zoomlion Heavy and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and Industrial.
Diversification Opportunities for Zoomlion Heavy and Industrial
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoomlion and Industrial is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Zoomlion Heavy i.e., Zoomlion Heavy and Industrial go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and Industrial
Assuming the 90 days trading horizon Zoomlion Heavy Industry is expected to generate 1.59 times more return on investment than Industrial. However, Zoomlion Heavy is 1.59 times more volatile than Industrial and Commercial. It trades about 0.1 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.15 per unit of risk. If you would invest 610.00 in Zoomlion Heavy Industry on September 23, 2024 and sell it today you would earn a total of 81.00 from holding Zoomlion Heavy Industry or generate 13.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zoomlion Heavy Industry vs. Industrial and Commercial
Performance |
Timeline |
Zoomlion Heavy Industry |
Industrial and Commercial |
Zoomlion Heavy and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoomlion Heavy and Industrial
The main advantage of trading using opposite Zoomlion Heavy and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
Industrial vs. Kweichow Moutai Co | Industrial vs. Agricultural Bank of | Industrial vs. China Mobile Limited | Industrial 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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