Correlation Between Zotye Automobile and ZYF Lopsking
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By analyzing existing cross correlation between Zotye Automobile Co and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Zotye Automobile and ZYF Lopsking 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 ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and ZYF Lopsking.
Diversification Opportunities for Zotye Automobile and ZYF Lopsking
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zotye and ZYF is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and ZYF Lopsking Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZYF Lopsking Aluminum 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 ZYF Lopsking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZYF Lopsking Aluminum has no effect on the direction of Zotye Automobile i.e., Zotye Automobile and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Zotye Automobile and ZYF Lopsking
Assuming the 90 days trading horizon Zotye Automobile Co is expected to generate 3.0 times more return on investment than ZYF Lopsking. However, Zotye Automobile is 3.0 times more volatile than ZYF Lopsking Aluminum. It trades about 0.16 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.04 per unit of risk. If you would invest 216.00 in Zotye Automobile Co on August 25, 2024 and sell it today you would earn a total of 41.00 from holding Zotye Automobile Co or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Zotye Automobile |
| ZYF Lopsking Aluminum |
Zotye Automobile and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and ZYF Lopsking
The main advantage of trading using opposite Zotye Automobile and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile position performs unexpectedly, ZYF Lopsking 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 ZYF Lopsking will offset losses from the drop in ZYF Lopsking's long position.| Zotye Automobile vs. Success Electronics | Zotye Automobile vs. Xiandai Investment Co | Zotye Automobile vs. Servyou Software Group | Zotye Automobile vs. Kunwu Jiuding Investment |
| ZYF Lopsking vs. Zijin Mining Group | ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Baoshan Iron Steel | ZYF Lopsking vs. Shandong Gold Mining |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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