Correlation Between Shenzhen New and ZYF Lopsking
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By analyzing existing cross correlation between Shenzhen New Nanshan and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Shenzhen New 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 Shenzhen New with a short position of ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and ZYF Lopsking.
Diversification Opportunities for Shenzhen New and ZYF Lopsking
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and ZYF is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan 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 Shenzhen New 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 Shenzhen New Nanshan 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 Shenzhen New i.e., Shenzhen New and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Shenzhen New and ZYF Lopsking
Assuming the 90 days trading horizon Shenzhen New Nanshan is expected to generate 1.47 times more return on investment than ZYF Lopsking. However, Shenzhen New is 1.47 times more volatile than ZYF Lopsking Aluminum. It trades about 0.2 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about 0.1 per unit of risk. If you would invest 267.00 in Shenzhen New Nanshan on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen New Nanshan or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Shenzhen New Nanshan |
| ZYF Lopsking Aluminum |
Shenzhen New and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and ZYF Lopsking
The main advantage of trading using opposite Shenzhen New and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New 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.| Shenzhen New vs. Guangdong Marubi Biotechnology | Shenzhen New vs. Ningbo Ligong Online | Shenzhen New vs. Quectel Wireless Solutions | Shenzhen New vs. Sichuan Hebang Biotechnology |
| 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 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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