Correlation Between ZYF Lopsking and Shantui Construction
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Shantui Construction Machinery, you can compare the effects of market volatilities on ZYF Lopsking and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Shantui Construction.
Diversification Opportunities for ZYF Lopsking and Shantui Construction
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZYF and Shantui is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Shantui Construction go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Shantui Construction
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 27.51 times less return on investment than Shantui Construction. In addition to that, ZYF Lopsking is 1.0 times more volatile than Shantui Construction Machinery. It trades about 0.0 of its total potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.08 per unit of volatility. If you would invest 409.00 in Shantui Construction Machinery on September 28, 2024 and sell it today you would earn a total of 557.00 from holding Shantui Construction Machinery or generate 136.19% 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. Shantui Construction Machinery
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Shantui Construction |
ZYF Lopsking and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Shantui Construction
The main advantage of trading using opposite ZYF Lopsking and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| ZYF Lopsking vs. Changjiang Publishing Media | ZYF Lopsking vs. Beijing Bashi Media | ZYF Lopsking vs. Suzhou Douson Drilling | ZYF Lopsking vs. China Publishing Media |
| Shantui Construction vs. ZYF Lopsking Aluminum | Shantui Construction vs. Western Metal Materials | Shantui Construction vs. Healthcare Co | Shantui Construction vs. Anhui Transport Consulting |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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