Correlation Between ZYF Lopsking and China Reform
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and China Reform Health, you can compare the effects of market volatilities on ZYF Lopsking and China Reform 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 ZYF Lopsking with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and China Reform.
Diversification Opportunities for ZYF Lopsking and China Reform
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZYF and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and ZYF Lopsking 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 ZYF Lopsking Aluminum are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and China Reform go up and down completely randomly.
Pair Corralation between ZYF Lopsking and China Reform
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 9.84 times less return on investment than China Reform. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.8 times less risky than China Reform. It trades about 0.05 of its potential returns per unit of risk. China Reform Health is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 658.00 in China Reform Health on August 25, 2024 and sell it today you would earn a total of 696.00 from holding China Reform Health or generate 105.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. China Reform Health
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| China Reform Health |
ZYF Lopsking and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and China Reform
The main advantage of trading using opposite ZYF Lopsking and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| ZYF Lopsking vs. Zijin Mining Group | ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Baoshan Iron Steel | ZYF Lopsking vs. Shandong Gold Mining |
| China Reform vs. ZYF Lopsking Aluminum | China Reform vs. Jiangxi JDL Environmental | China Reform vs. Hang Xiao Steel | China Reform vs. Dongjiang Environmental Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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