Correlation Between Zoy Home and Cangzhou Mingzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zoy Home Furnishing and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Zoy Home and Cangzhou Mingzhu 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 Zoy Home with a short position of Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Cangzhou Mingzhu.
Diversification Opportunities for Zoy Home and Cangzhou Mingzhu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zoy and Cangzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic and Zoy Home 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 Zoy Home Furnishing are associated (or correlated) with Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Zoy Home i.e., Zoy Home and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Zoy Home and Cangzhou Mingzhu
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to generate 1.14 times more return on investment than Cangzhou Mingzhu. However, Zoy Home is 1.14 times more volatile than Cangzhou Mingzhu Plastic. It trades about 0.13 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about 0.11 per unit of risk. If you would invest 861.00 in Zoy Home Furnishing on September 25, 2024 and sell it today you would earn a total of 219.00 from holding Zoy Home Furnishing or generate 25.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zoy Home Furnishing vs. Cangzhou Mingzhu Plastic
Performance |
Timeline |
Zoy Home Furnishing |
Cangzhou Mingzhu Plastic |
Zoy Home and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoy Home and Cangzhou Mingzhu
The main advantage of trading using opposite Zoy Home and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.Zoy Home vs. Agricultural Bank of | Zoy Home vs. Industrial and Commercial | Zoy Home vs. Bank of China | Zoy Home vs. China Construction Bank |
Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Ningbo MedicalSystem Biotechnology | Cangzhou Mingzhu vs. Zoy Home Furnishing | Cangzhou Mingzhu vs. China Railway Construction |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Stocks Directory Find actively traded stocks across global markets |