Correlation Between ZhongAn Online and ATOSS SOFTWARE
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and ATOSS SOFTWARE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ZhongAn Online and ATOSS SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and ATOSS SOFTWARE, you can compare the effects of market volatilities on ZhongAn Online and ATOSS SOFTWARE 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 ZhongAn Online with a short position of ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and ATOSS SOFTWARE.
Diversification Opportunities for ZhongAn Online and ATOSS SOFTWARE
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZhongAn and ATOSS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and ATOSS SOFTWARE go up and down completely randomly.
Pair Corralation between ZhongAn Online and ATOSS SOFTWARE
Assuming the 90 days horizon ZhongAn Online P is expected to generate 3.9 times more return on investment than ATOSS SOFTWARE. However, ZhongAn Online is 3.9 times more volatile than ATOSS SOFTWARE. It trades about 0.16 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about 0.09 per unit of risk. If you would invest 125.00 in ZhongAn Online P on April 23, 2025 and sell it today you would earn a total of 81.00 from holding ZhongAn Online P or generate 64.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ZhongAn Online P vs. ATOSS SOFTWARE
Performance |
Timeline |
ZhongAn Online P |
ATOSS SOFTWARE |
ZhongAn Online and ATOSS SOFTWARE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ZhongAn Online and ATOSS SOFTWARE
The main advantage of trading using opposite ZhongAn Online and ATOSS SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, ATOSS SOFTWARE 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 ATOSS SOFTWARE will offset losses from the drop in ATOSS SOFTWARE's long position.ZhongAn Online vs. Tokio Marine Holdings | ZhongAn Online vs. The Peoples Insurance | ZhongAn Online vs. W R Berkley | ZhongAn Online vs. Suncorp Group Limited |
ATOSS SOFTWARE vs. Guangdong Investment Limited | ATOSS SOFTWARE vs. Chuangs China Investments | ATOSS SOFTWARE vs. Erste Group Bank | ATOSS SOFTWARE vs. CVB Financial Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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