Correlation Between Zotye Automobile and Shenzhen Sunlord
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By analyzing existing cross correlation between Zotye Automobile Co and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Zotye Automobile and Shenzhen Sunlord 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 Zotye Automobile with a short position of Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Shenzhen Sunlord.
Diversification Opportunities for Zotye Automobile and Shenzhen Sunlord
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele and Zotye Automobile 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 Zotye Automobile Co are associated (or correlated) with Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Zotye Automobile and Shenzhen Sunlord
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Shenzhen Sunlord. In addition to that, Zotye Automobile is 1.81 times more volatile than Shenzhen Sunlord Electronics. It trades about 0.0 of its total potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.04 per unit of volatility. If you would invest 2,502 in Shenzhen Sunlord Electronics on September 24, 2024 and sell it today you would earn a total of 773.00 from holding Shenzhen Sunlord Electronics or generate 30.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zotye Automobile Co vs. Shenzhen Sunlord Electronics
Performance |
Timeline |
Zotye Automobile |
Shenzhen Sunlord Ele |
Zotye Automobile and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zotye Automobile and Shenzhen Sunlord
The main advantage of trading using opposite Zotye Automobile and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.Zotye Automobile vs. New China Life | Zotye Automobile vs. Ming Yang Smart | Zotye Automobile vs. 159681 | Zotye Automobile vs. 159005 |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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