Correlation Between Zhong Yang and Trust Stamp

Can any of the company-specific risk be diversified away by investing in both Zhong Yang and Trust Stamp 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 Zhong Yang and Trust Stamp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Zhong Yang Financial and Trust Stamp, you can compare the effects of market volatilities on Zhong Yang and Trust Stamp 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 Zhong Yang with a short position of Trust Stamp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhong Yang and Trust Stamp.

Diversification Opportunities for Zhong Yang and Trust Stamp

0.46

Correlation Coefficient

Zhong Yang  Trust Stamp

Very weak diversification

The 3 months correlation between Zhong and Trust is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zhong Yang Financial and Trust Stamp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trust Stamp and Zhong Yang 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 Zhong Yang Financial are associated (or correlated) with Trust Stamp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trust Stamp has no effect on the direction of Zhong Yang i.e., Zhong Yang and Trust Stamp go up and down completely randomly.

Pair Corralation between Zhong Yang and Trust Stamp

Considering the 90-day investment horizon Zhong Yang is expected to generate 1.37 times less return on investment than Trust Stamp. In addition to that, Zhong Yang is 1.54 times more volatile than Trust Stamp. It trades about 0.04 of its total potential returns per unit of risk. Trust Stamp is currently generating about 0.09 per unit of volatility. If you would invest  319.00  in Trust Stamp on July 17, 2025 and sell it today you would earn a total of  67.00  from holding Trust Stamp or generate 21.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Zhong Yang Financial  vs.  Trust Stamp

Zhong Yang Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zhong Yang Financial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Zhong Yang reported solid returns over the last few months and may actually be approaching a breakup point.

Trust Stamp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Trust Stamp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Trust Stamp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Zhong Yang and Trust Stamp

The main advantage of trading using opposite Zhong Yang and Trust Stamp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhong Yang position performs unexpectedly, Trust Stamp 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 Trust Stamp will offset losses from the drop in Trust Stamp's long position.

The idea behind Zhong Yang Financial and Trust Stamp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..