Correlation Between ZYF Lopsking and Shenzhen Clou
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Shenzhen Clou Electronics, you can compare the effects of market volatilities on ZYF Lopsking and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Shenzhen Clou.
Diversification Opportunities for ZYF Lopsking and Shenzhen Clou
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Shenzhen Clou go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Shenzhen Clou
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 1.64 times less return on investment than Shenzhen Clou. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.53 times less risky than Shenzhen Clou. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 424.00 in Shenzhen Clou Electronics on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Shenzhen Clou Electronics or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Shenzhen Clou Electronics |
ZYF Lopsking and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Shenzhen Clou
The main advantage of trading using opposite ZYF Lopsking and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| ZYF Lopsking vs. GreenTech Environmental Co | ZYF Lopsking vs. Shenzhen MYS Environmental | ZYF Lopsking vs. Dalian Zeus Entertainment | ZYF Lopsking vs. Lingyuan Iron Steel |
| Shenzhen Clou vs. Maxvision Technology Corp | Shenzhen Clou vs. Huaxia Fund Management | Shenzhen Clou vs. Guangzhou KingTeller Technology | Shenzhen Clou vs. 360 Security Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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