Correlation Between Wuxi Chemical and ZYF Lopsking
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By analyzing existing cross correlation between Wuxi Chemical Equipment and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Wuxi Chemical 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 Wuxi Chemical with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Chemical and ZYF Lopsking.
Diversification Opportunities for Wuxi Chemical and ZYF Lopsking
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuxi and ZYF is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Chemical Equipment 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 Wuxi Chemical 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 Wuxi Chemical Equipment 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 Wuxi Chemical i.e., Wuxi Chemical and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Wuxi Chemical and ZYF Lopsking
Assuming the 90 days trading horizon Wuxi Chemical Equipment is expected to under-perform the ZYF Lopsking. But the stock apears to be less risky and, when comparing its historical volatility, Wuxi Chemical Equipment is 1.56 times less risky than ZYF Lopsking. The stock trades about -0.05 of its potential returns per unit of risk. The ZYF Lopsking Aluminum is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 523.00 in ZYF Lopsking Aluminum on November 30, 2024 and sell it today you would earn a total of 35.00 from holding ZYF Lopsking Aluminum or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuxi Chemical Equipment vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Wuxi Chemical Equipment |
| ZYF Lopsking Aluminum |
Wuxi Chemical and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuxi Chemical and ZYF Lopsking
The main advantage of trading using opposite Wuxi Chemical and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Chemical 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.| Wuxi Chemical vs. Olympic Circuit Technology | Wuxi Chemical vs. China Reform Health | Wuxi Chemical vs. Northking Information Technology | Wuxi Chemical vs. Keeson Technology Corp |
| ZYF Lopsking vs. China Sports Industry | ZYF Lopsking vs. Jiangsu Jinling Sports | ZYF Lopsking vs. HanS Laser Tech | ZYF Lopsking vs. Hefei Metalforming Mach |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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