Correlation Between ZYF Lopsking and Shenzhen Hifuture
Specify exactly 2 symbols:
By analyzing existing cross correlation between ZYF Lopsking Aluminum and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on ZYF Lopsking and Shenzhen Hifuture 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 Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Shenzhen Hifuture.
Diversification Opportunities for ZYF Lopsking and Shenzhen Hifuture
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ZYF and Shenzhen is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Shenzhen Hifuture
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 3.03 times less return on investment than Shenzhen Hifuture. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.19 times less risky than Shenzhen Hifuture. It trades about 0.13 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Shenzhen Hifuture Electric on September 5, 2024 and sell it today you would earn a total of 51.00 from holding Shenzhen Hifuture Electric or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Shenzhen Hifuture |
ZYF Lopsking and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Shenzhen Hifuture
The main advantage of trading using opposite ZYF Lopsking and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Shenzhen Hifuture 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 Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| ZYF Lopsking vs. Wanhua Chemical Group | ZYF Lopsking vs. Baoshan Iron Steel | ZYF Lopsking vs. Rongsheng Petrochemical Co | 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |