Correlation Between ZYF Lopsking and Shenzhen MTC
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By analyzing existing cross correlation between ZYF Lopsking Aluminum and Shenzhen MTC Co, you can compare the effects of market volatilities on ZYF Lopsking and Shenzhen MTC 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 MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZYF Lopsking and Shenzhen MTC.
Diversification Opportunities for ZYF Lopsking and Shenzhen MTC
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ZYF and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ZYF Lopsking Aluminum and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC 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 MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of ZYF Lopsking i.e., ZYF Lopsking and Shenzhen MTC go up and down completely randomly.
Pair Corralation between ZYF Lopsking and Shenzhen MTC
Assuming the 90 days trading horizon ZYF Lopsking Aluminum is expected to generate 1.08 times more return on investment than Shenzhen MTC. However, ZYF Lopsking is 1.08 times more volatile than Shenzhen MTC Co. It trades about 0.09 of its potential returns per unit of risk. Shenzhen MTC Co is currently generating about -0.07 per unit of risk. If you would invest 560.00 in ZYF Lopsking Aluminum on September 1, 2024 and sell it today you would earn a total of 23.00 from holding ZYF Lopsking Aluminum or generate 4.11% 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 MTC Co
Performance |
| Timeline |
| ZYF Lopsking Aluminum |
| Shenzhen MTC |
ZYF Lopsking and Shenzhen MTC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZYF Lopsking and Shenzhen MTC
The main advantage of trading using opposite ZYF Lopsking and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZYF Lopsking position performs unexpectedly, Shenzhen MTC 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 MTC will offset losses from the drop in Shenzhen MTC'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 MTC vs. Jinling Hotel Corp | Shenzhen MTC vs. Nuode Investment Co | Shenzhen MTC vs. Cultural Investment Holdings | Shenzhen MTC vs. Chahua Modern Housewares |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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