Correlation Between Xinjiang Beixin and ZYF Lopsking
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Xinjiang Beixin 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 Xinjiang Beixin with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and ZYF Lopsking.
Diversification Opportunities for Xinjiang Beixin and ZYF Lopsking
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and ZYF is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge 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 Xinjiang Beixin 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 Xinjiang Beixin RoadBridge 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 Xinjiang Beixin i.e., Xinjiang Beixin and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and ZYF Lopsking
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to under-perform the ZYF Lopsking. In addition to that, Xinjiang Beixin is 1.96 times more volatile than ZYF Lopsking Aluminum. It trades about -0.14 of its total potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about -0.26 per unit of volatility. If you would invest 601.00 in ZYF Lopsking Aluminum on October 17, 2024 and sell it today you would lose (75.00) from holding ZYF Lopsking Aluminum or give up 12.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Xinjiang Beixin Road |
| ZYF Lopsking Aluminum |
Xinjiang Beixin and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and ZYF Lopsking
The main advantage of trading using opposite Xinjiang Beixin and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin 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.| Xinjiang Beixin vs. AVIC Fund Management | Xinjiang Beixin vs. CICC Fund Management | Xinjiang Beixin vs. Sichuan Yahua Industrial | Xinjiang Beixin vs. Gem Year Industrial Co |
| ZYF Lopsking vs. Longjian Road Bridge | ZYF Lopsking vs. Xinjiang Beixin RoadBridge | ZYF Lopsking vs. Rising Nonferrous Metals | ZYF Lopsking vs. Hubeiyichang Transportation Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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