Correlation Between ZYF Lopsking and Shenzhen New
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Shenzhen New Nanshan, you can compare the effects of market volatilities on ZYF Lopsking and Shenzhen New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Shenzhen New.
Diversification Opportunities for ZYF Lopsking and Shenzhen New
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ZYF and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Shenzhen New go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Shenzhen New
Assuming the 90 days trading horizon ZYF Lopsking is expected to generate 1.81 times less return on investment than Shenzhen New. But when comparing it to its historical volatility, ZYF Lopsking Aluminum is 1.46 times less risky than Shenzhen New. It trades about 0.14 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Shenzhen New Nanshan on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Shenzhen New Nanshan or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZYF Lopsking Aluminum vs. Shenzhen New Nanshan
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Shenzhen New Nanshan |
ZYF Lopsking and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Shenzhen New
The main advantage of trading using opposite ZYF Lopsking and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New'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 |
| Shenzhen New vs. Guangdong Marubi Biotechnology | Shenzhen New vs. Ningbo Ligong Online | Shenzhen New vs. Quectel Wireless Solutions | Shenzhen New vs. Sichuan Hebang Biotechnology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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