Correlation Between Zhejiang Zhengguang and CIMC Vehicles
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By analyzing existing cross correlation between Zhejiang Zhengguang Industrial and CIMC Vehicles Co, you can compare the effects of market volatilities on Zhejiang Zhengguang and CIMC Vehicles 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 Zhejiang Zhengguang with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Zhengguang and CIMC Vehicles.
Diversification Opportunities for Zhejiang Zhengguang and CIMC Vehicles
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and CIMC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Zhengguang Industrial and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Zhejiang Zhengguang 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 Zhejiang Zhengguang Industrial are associated (or correlated) with CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Zhejiang Zhengguang i.e., Zhejiang Zhengguang and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Zhejiang Zhengguang and CIMC Vehicles
Assuming the 90 days trading horizon Zhejiang Zhengguang Industrial is expected to generate 2.01 times more return on investment than CIMC Vehicles. However, Zhejiang Zhengguang is 2.01 times more volatile than CIMC Vehicles Co. It trades about 0.08 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.06 per unit of risk. If you would invest 3,121 in Zhejiang Zhengguang Industrial on September 11, 2025 and sell it today you would earn a total of 464.00 from holding Zhejiang Zhengguang Industrial or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Zhengguang Industrial vs. CIMC Vehicles Co
Performance |
| Timeline |
| Zhejiang Zhengguang |
| CIMC Vehicles |
Zhejiang Zhengguang and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Zhengguang and CIMC Vehicles
The main advantage of trading using opposite Zhejiang Zhengguang and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Zhengguang position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Zhejiang Zhengguang vs. Hefei Metalforming Mach | Zhejiang Zhengguang vs. Jiajia Food Group | Zhejiang Zhengguang vs. Jiaozuo Wanfang Aluminum | Zhejiang Zhengguang vs. Qingdao Foods Co |
| CIMC Vehicles vs. Zhejiang Zhengguang Industrial | CIMC Vehicles vs. Guangdong Jingyi Metal | CIMC Vehicles vs. Pengxin International Mining | CIMC Vehicles vs. Suzhou Industrial Park |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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